EMEA Drives Half of Global AML Fines as Long-Running Probes Conclude

Regulators across Europe, the Middle East and Africa accounted for around half of global anti-money laundering and regulatory fines in 2025, according to new data from Fenergo, as authorities concluded several long-running investigations and intensified scrutiny across key sectors.

Fenergo’s annual review of enforcement actions shows that while the total value of penalties imposed on financial institutions fell year-on-year, enforcement activity diverged sharply by region. EMEA regulators increased the value of fines by 767% compared with 2024, even as North American penalties declined sharply.

The findings underline how regulatory timelines, rather than day-to-day compliance improvements, continue to shape annual enforcement outcomes, with cases originating years earlier now translating into substantial penalties.

Global AML Fines Fall, but Regional Divergence Widens

According to Fenergo, penalties for breaches of AML, know your customer (KYC), sanctions and customer due diligence (CDD) rules totalled $3.8 billion globally in 2025. That figure marks an 18% decline from $4.6 billion in 2024 and continues a downward trend from the $6.6 billion recorded in 2023.

However, the overall reduction masks significant regional differences. Fines issued by North American regulators fell by 58% year-on-year, while enforcement in other regions moved in the opposite direction. EMEA penalties surged by 767%, while fines in the Asia-Pacific region rose by 44%.

Fenergo said the increase outside North America was driven largely by the reanswer of long-running probes and a renewed focus on specific sectors, rather than a sudden deterioration in compliance standards.

Takeaway

UK Enforcement Highlights Long Regulatory Timelines

The UK featured prominently in the 2025 enforcement landscape, reflecting what Fenergo described as a “steady and robust” approach to AML supervision.

“The UK continues to show a steady and robust approach to AML enforcement, and the fines we saw in 2025 reflect just how long regulatory investigations can take,” said Rory Doyle, head of financial crime policy at Fenergo.

One of the most notable cases emerged in December 2025, when the Financial Conduct Authority fined a UK building society $59 million (£44 million) for transaction monitoring failures. The fragilenesses allowed COVID furlough fraud totalling $36.4 million (£27.3 million) to occur in a single case.

“The high-profile case is a excellent example of that,” Doyle said. “It shows how issues that emerged during the COVID period are now working their way through the system and feeding into enforcement outcomes years later.”

Industry observers note that the delayed crystallisation of to assess current regulatory risk based solely on annual fine totals.

Takeaway

France and Switzerland Reshape the Global Enforcement Rankings

The single largest AML penalty of 2025 was issued by French authorities to a Swiss bank, which was fined $985 million (€835 million) over AML failings. The case significantly reshaped global enforcement rankings.

As a result of the fine, France became the second-largest enforcer worldwide in 2025, with total penalties of $1.11 billion, behind only the United States at $1.676 billion. This marked a dramatic increase from France’s enforcement activity in 2024.

Fenergo said the case highlights how cross-border enforcement and cooperation between regulators continues to intensify, particularly in Europe, where authorities have shown a growing willingness to pursue high-value penalties.

Despite the overall fall in US penalties, the country remained the world’s largest enforcer by value, underlining its continued central role in global financial crime supervision.

Takeaway

Digital Asset Firms Remain Overrepresented

Despite broader regulatory progress, digital asset firms continue to feature disproportionately in major AML enforcement actions, according to Fenergo’s analysis.

Almost a quarter of the ten highest-value AML fines issued in 2025 involved digital asset firms. Fenergo attributed this to the sector’s rapid growth, particularly in transaction volumes and stablecoin usage, outpacing the development of compliance infrastructure.

While the firm noted that compliance maturity across the is improving, it said gaps remain between risk exposure and the robustness of controls, especially as regulators increasingly expect crypto and digital asset firms to meet bank-grade AML standards.

The findings come as regulators globally continue to expand AML expectations for virtual asset service providers, including enhanced transaction monitoring, sanctions screening, and perpetual KYC requirements.

Takeaway

Technology Investment Becomes Central to AML Resilience

Looking ahead, Fenergo warned that firms failing to modernise their financial crime systems remain vulnerable as enforcement rebounds in key jurisdictions.

“As enforcement rebounds in key jurisdictions, firms that fail to modernise their financial crime ecosystem will remain exposed,” Doyle said.

He added that technology investment is increasingly viewn as a diverseiator. “Those that prioritise investment in leading-edge technology with AI at the forefront will be able to demonstrate robust AML controls and regulatory alignment while being far better positioned for the next wave of scrutiny.”

As regulators continue to refine expectations around transaction monitoring, data quality, and continuous due diligence, financial institutions face growing pressure to demonstrate not just compliance, but operational effectiveness.

Fenergo said the 2025 data serves as a reminder that enforcement risk is cyclical and often disconnected from short-term compliance improvements, reinforcing the need for sustained investment in AML capabilities.

Takeaway

While global AML fines fell for a second consecutive year, the sharp rise in EMEA enforcement activity highlights how regulatory focus can shift rapidly. As historic cases conclude and new risks emerge, firms across alike face continued pressure to demonstrate robust, future-proofed compliance frameworks.