Biggest AML Penalties Overview 2025

The world of anti-money laundering (AML) compliance has undergone a significant transformation in recent years, with regulators taking a firm stance on non-compliance. This shift has led to a rise in the scale and frequency of AML penalties, with billions of dollars in fines levied against companies across sectors, including fintech firms, banks, and even crypto startups.

For small to mid-sized U.S. businesses in the fintech and digital asset space, AML risks are real and costly. The United Nations Office on Drugs and Crime (UNODC) estimates that between EUR 715 billion and 1.87 trillion, or 2 to 5% of global GDP, is laundered each year. With such staggering amounts at play, strengthening your AML compliance is not just about avoiding fines but protecting your company's reputation and operations.

This article will explore the largest AML penalties to date, highlighting key lessons you can apply to reduce your risk and improve your compliance practices. Let's dive into how your business can stay ahead of the growing scrutiny on AML enforcement.

What Are AML Fines and Why Are They Imposed?

AML fines are financial penalties imposed on businesses that fail to comply with anti-money laundering (AML) regulations. These regulations are designed to prevent the economic system from being misused for illegal activities, such as money laundering, terrorist financing, or sanctions evasion.

In the United States, AML enforcement primarily follows the Bank Secrecy Act (BSA) and the USA PATRIOT Act. Regulatory bodies like FinCEN, OFAC, and the Department of Justice are responsible for ensuring compliance. If a business fails to meet these requirements, it may face significant AML penalties.

The Purpose of AML Fines

AML fines serve two primary purposes:

1. Punishment for Non-Compliance: When a business breaches AML regulations, a fine is imposed as a form of punishment for not fulfilling legal obligations.
2. Deterrence: These penalties are also designed to deter other institutions from neglecting AML controls. The aim is to encourage businesses to uphold strong AML practices, minimizing the risk of financial crimes.

How AML Fines Impact Small and Mid-Sized Businesses?

For fintech companies, crypto startups, and digital asset businesses, especially those in the early stages, AML penalties can be a significant hurdle. Failing to comply with AML regulations can lead to:

• High Costs: AML fines can be financially crippling for small businesses, diverting resources that could have been used to grow and innovate.
• Licensing Challenges: Non-compliance can also create roadblocks in obtaining necessary licenses and regulatory approvals, especially for companies that operate in the highly regulated fintech and crypto space.
• Reputational Damage: AML violations can damage your business's reputation, potentially resulting in a loss of customers or partnerships.

The Importance of Strong Compliance Measures

To avoid AML penalties, your business must establish strong compliance measures from the outset. This includes:

• Regular Training: Ensuring your team is up-to-date on AML regulations.
• AML Monitoring Systems: Implementing effective systems to monitor and detect suspicious activity.
• Documentation and Reporting: Keeping accurate records and reports to meet regulatory standards.

By proactively addressing these issues, your business can avoid costly penalties and build a reputation for trustworthiness and compliance in the competitive fintech and crypto sectors.

Also Read: Understanding the Three Stages of Money Laundering and Prevention

Major AML Penalties Imposed in 2025: An Overview 

The global crackdown on Anti-Money Laundering (AML) violations continues to escalate, with regulators increasingly targeting emerging financial platforms, especially those in the fintech, digital asset, and crypto sectors. From 2022 through 2025, enforcement actions have risen sharply in both size and scope. Understanding these trends is critical for small to mid-sized U.S. businesses to avoid potential penalties that could severely impact growth and reputation.

In this section, we'll look at the significant AML penalties imposed in 2025, focusing on key lessons your business can implement to stay compliant and mitigate risk.

1. LPL Financial – $3 Million Fine (March 2025)

In March 2025, U.S.-based broker-dealer LPL Financial agreed to a $3 million settlement with the Financial Industry Regulatory Authority (FINRA) for failures in its AML program. Specifically, LPL’s systems failed to detect and report suspicious activity tied to penny stock trading, raising concerns about customer due diligence (CDD) and suspicious activity report (SAR) obligations.

Key Takeaways:

• Customer Due Diligence (CDD): Adequate CDD is crucial for maintaining AML compliance. Ensure that your business takes steps to verify customers and monitor their activities effectively.
• SAR Filing Compliance: Failure to file Suspicious Activity Reports (SARs) is a common issue, and regular audits of your internal reporting procedures can help avoid penalties.

LPL Financial's fine sets a precedent for broker-dealers and financial platforms, showing that regulatory bodies are paying close attention to AML practices within this space. But the story doesn't stop here; another prominent fintech firm, Block Inc. (Cash App), faced significant penalties just months earlier.

2. Block Inc. (Cash App) – $1 Million Fine (January 2025)

In January 2025, Block Inc., the parent company of Cash App, faced a combined $80 million fine across 48 state financial regulators due to violations of the Bank Secrecy Act (BSA) and AML laws. The regulators found that Cash App had insufficient policies for monitoring and preventing money laundering activities on its platform.

Key Takeaways:

• AML Monitoring Policies: A lack of effective monitoring policies is a major vulnerability. Businesses must have robust systems in place to detect suspicious transactions in real time.
• Regulatory Coordination: The fact that 48 state regulators were involved emphasizes the importance of ensuring that your AML practices align with both state and federal regulations.

Cash App's fine highlights the urgency for fintech companies to strengthen their AML systems, especially as they scale. But it's not just U.S.-based platforms under scrutiny. European banks are also feeling the heat, as we'll see with De Volksbank in the next section.

3. De Volksbank (Netherlands) – €2.5 Million Fine (February 2025)

In February 2025, the Dutch Central Bank (DNB) imposed a €2.5 million fine on De Volksbank N.V. for serious shortcomings in its AML compliance systems. Between 2018 and 2020, the bank failed to adequately assess the risk of money laundering and terrorist financing across its customer base, resulting in incomplete customer risk profiles, inadequate transaction monitoring, and deficient internal oversight.

Key Takeaways:

• Risk Profiling: Regularly updating and reviewing customer risk profiles is a key part of any AML compliance program.
• Internal Oversight: Strong internal controls are necessary to ensure compliance systems are not just in place but are actively maintained and regularly tested.

This case serves as a reminder that AML compliance is a global concern, and even banks in highly regulated countries must remain vigilant. If your company operates in multiple countries or regions, this highlights the need for comprehensive, jurisdiction-specific compliance efforts. Now, let’s turn our attention to another significant case in the U.S. from 2024 that shows just how costly AML violations can be.

AML Fines in 2024: A Major Evolution in Enforcement

Before we wrap up with more 2025 penalties, let's look back at 2024, a year marked by an even wider net of AML fines. Regulators expanded their focus, imposing penalties on traditional financial institutions and neobanks, digital lenders, and payment processors.

1. TD Bank (USA) – $3.09 Billion Fine (2024)

One of the most substantial AML penalties in recent years, TD Bank faced a $3.09 billion fine in 2024 for failing to monitor suspicious transactions related to drug trafficking. This fine highlights the dangers of neglecting AML controls, especially when it comes to high-volume, suspicious activity.

Key Takeaways:

• Suspicious Transaction Monitoring: Businesses must ensure their AML systems can flag high-volume transactions and investigate them properly.
• Proactive Risk Management: Maintaining a proactive approach to monitoring all aspects of your operations is key to preventing non-compliance.

2. SkyCity Adelaide (Australia) – A$67 Million Fine (2024)

In 2024, SkyCity Adelaide was fined A$67 million for failing to meet its AML obligations under Australia's AML/CFT Act. The casino operator failed to monitor suspicious transactions and lacked effective customer due diligence (CDD).

Key Takeaways:

• Customer Due Diligence (CDD) and Monitoring: It's essential for any business, regardless of industry, to implement effective CDD practices and transaction monitoring systems.
• Compliance Across Sectors: Even non-financial sectors like gaming and casinos face heightened AML scrutiny. This also applies to your business if you deal with large amounts of cash or cross-border transactions.

These penalties from 2024 demonstrate how regulators are widening their focus to include non-traditional financial entities. Let's circle back to 2025, when regulators targeted emerging economic sectors.

Strengthening Your Business’s AML Compliance

The recent surge in AML fines underscores the growing pressure on businesses to stay compliant with ever-evolving regulations. Non-compliance's financial and reputational risks are becoming increasingly significant for small to mid-sized U.S. businesses, particularly in the fintech and crypto sectors. However, these risks can be mitigated with the right compliance measures.

How to Protect Your Business:

1. Invest in Technology: Leverage advanced compliance automation tools to streamline monitoring, reporting, and risk management.
2. Implement Ongoing Training: Regularly train your staff to stay up-to-date with the latest AML regulations and to recognize red flags in transactions.
3. Conduct Regular Audits: Periodically assess your internal systems and processes to ensure they remain in line with current regulations.

By adopting these proactive measures, you can reduce your risk of facing AML penalties and build a strong foundation for future growth.

Analysis of Causes Behind AML Penalties

AML penalties are often a result of non-compliance with regulatory standards. For small to mid-sized businesses, especially those in the fintech and digital asset sectors, this non-compliance typically arises from gaps in internal systems designed to monitor financial transactions and detect suspicious activities.

Key causes of AML penalties include:

• Inadequate Customer Verification (KYC): Failing to properly verify customers and their transactions leaves businesses vulnerable to money laundering schemes.
• Poor Transaction Monitoring: If your system doesn't flag suspicious or unusual transactions, it could result in significant fines.
• Lack of Reporting: Failure to report suspicious activities to the authorities can lead to penalties.

These failures can expose your business to substantial fines, damage your reputation, and undermine customer trust. As a business owner in an emerging sector, such as crypto or fintech, it's essential to have robust AML protocols to prevent these issues.

Also Read: Key KYC and AML Differences Explained (2025)

Impact of AML Penalties on Financial Institutions

The impact of AML penalties on financial institutions, especially early-stage companies, is far-reaching.

• Financial Losses: Penalties can amount to millions of dollars, which can cripple a young company's finances.
• Damage to Reputation: Public knowledge of non-compliance can harm your business's reputation, causing customers and partners to turn away.
• Regulatory Scrutiny: Companies facing AML penalties often come under increased scrutiny, leading to ongoing challenges in securing licenses or even operating.

For example, a fintech company with lax compliance practices may find itself under investigation, significantly affecting its ability to secure further investments or partnerships.

Ultimately, these penalties can halt your company’s growth, delay licensing, and jeopardize customer relationships. Ensuring strong compliance practices is essential to avoid these disruptions.

Role of Regulatory Bodies in Enforcing AML Penalties

In the U.S., regulatory bodies like FinCEN (Financial Crimes Enforcement Network) and OFAC (Office of Foreign Assets Control) are responsible for enforcing AML regulations. These organizations set the standards, monitor transactions, and investigate businesses that might be non-compliant.

Key roles of regulatory bodies include:

• Establishing AML Guidelines: Regulators publish clear guidelines on how businesses should structure their AML compliance processes.
• Investigating Non-Compliance: They audit companies and take legal action against those failing to comply with regulations.
• Issuing Penalties: When a business is found to be in violation, these bodies enforce penalties, which can include fines, restrictions, or even closure.

For businesses in fintech and crypto, understanding the role of these regulatory bodies is crucial. Being proactive in aligning with their requirements helps avoid penalties and ensures smoother operations in a heavily regulated market.

Trends and Predictions for Future AML Penalties

The scope of AML penalties will likely increase, especially as the regulatory focus shifts towards emerging financial technologies such as cryptocurrency and stablecoins. In the coming years, you can expect the following trends:

• Increased Scrutiny on Emerging Sectors: As digital assets grow in popularity, regulators will intensify their focus on these sectors, implementing stricter AML enforcement measures.
• Stronger Compliance Demands: There will be greater emphasis on robust KYC (Know Your Customer) processes, real-time transaction monitoring, and comprehensive reporting requirements.
• More Aggressive Penalties: Non-compliance will attract higher fines and stronger enforcement actions, especially for businesses operating without adequate systems to detect or report suspicious activities.

If your business is in the fintech or crypto space, staying ahead of these trends is essential. Strengthening your internal compliance practices and preparing for evolving regulatory standards will ensure that your business remains competitive and compliant, avoiding the costly consequences of AML penalties.

Conclusion

As your fintech or crypto startup grows, so do the challenges of managing compliance, particularly with the evolving risks of AML penalties. Failing to stay up-to-date with U.S. regulations can lead to costly fines and irreparable damage to your reputation.

Fraxtional is here to help you navigate these complexities. We offer flexible compliance solutions and expert guidance, ensuring your business stays aligned with the latest KYC and AML regulations. Our tailored services provide continuous monitoring, allowing you to focus on growing your business while we handle the compliance details.

Don’t let AML penalties put your startup at risk. Get in touch with Fraxtional today to explore how we can safeguard your business and simplify your compliance journey.