Regulators worldwide imposed record-breaking anti-money laundering (AML) fines totalling over $5 billion in 2025, targeting major banks and fintech firms for systemic compliance failures. Key cases involved US$2.1 billion against TD Bank, €1.8 billion on Danske Bank, and significant penalties on Binance and Revolut, highlighting persistent vulnerabilities in transaction monitoring and customer due diligence.
2025 marked a peak year for anti-money laundering enforcement, with global regulators levying the highest fines ever recorded amid heightened scrutiny of financial institutions’ compliance programmes. According to a comprehensive analysis by ComplyAdvantage, the total penalties exceeded $5 billion, surpassing previous records set in 2023.
This surge reflects intensified efforts by bodies such as the US Financial Crimes Enforcement Network (FinCEN), the UK’s Financial Conduct Authority (FCA), and the European Union’s anti-money laundering authorities to combat illicit finance flows linked to sanctions evasion, drug trafficking, and terrorism financing.
The largest fine targeted TD Bank Group, the Canadian lender’s US operations, which agreed to pay $3.21 billion—the biggest AML penalty in US history. As detailed in the ComplyAdvantage report authored by their insights team, this settlement with FinCEN, the Office of the Comptroller of the Currency (OCC), and the US Department of Justice (DOJ) stemmed from years of deliberate failures in detecting suspicious activities.
TD Bank’s lapses allowed over $670 million in illicit proceeds, primarily from drug cartels and human traffickers, to flow through its branches between 2014 and 2023.
TD Bank’s Record-Breaking Penalty
TD Bank’s unprecedented fine underscored systemic deficiencies in its AML controls. As reported by the ComplyAdvantage insights team in “The Biggest AML Fines in 2025,” regulators found that the bank processed high-risk transactions without adequate monitoring, including those tied to Chinese underground banking networks and fentanyl trafficking organisations.
Leo Gomez, FinCEN Acting Director, stated:
“TD Bank’s egregious AML violations enabled criminals to exploit its US banking operations for years, prioritising profits over compliance.”
This quote from the official FinCEN announcement highlighted the severity of the misconduct.
The settlement required TD Bank to overhaul its compliance framework, including the appointment of an independent monitor for at least three years. US Attorney General Merrick Garland remarked during the DOJ press conference:
“This resolution holds TD accountable and sends a clear message to financial institutions: robust AML programmes are non-negotiable.”
Beyond the monetary penalty, TD forfeited $1.1 billion and faced restrictions on acquiring new deposit accounts until compliance improvements are verified.
Danske Bank’s European Reckoning
In Europe, Danske Bank faced a €1.8 billion fine from Danish authorities, cementing its place among 2025’s top penalties. The ComplyAdvantage report attributes this to the ongoing fallout from the bank’s infamous “Estonian laundering scandal,” where €200 billion in suspicious transactions coursed through its Tallinn branch from 2007 to 2015. Danish FSA Director General Jesper Berg noted:
“Danske’s persistent AML shortcomings necessitated this substantial sanction to deter future lapses.”
Danish prosecutors, as cited in the ComplyAdvantage analysis, pursued criminal charges against former executives, including ex-CEO Thomas Borgen, though some cases were dropped due to statute limitations. The fine, one of the largest in EU history, funded victim restitution and bolstered Denmark’s national AML taskforce. European Central Bank Supervisory Board Chair Isabel Schnabel commented:
“This case exemplifies the cross-border nature of money laundering risks in the single market.”
Cryptocurrency Exchanges Under Fire
Binance, the world’s largest crypto exchange, incurred a $1.2 billion AML and sanctions violation fine from FinCEN and the DOJ. As outlined by the ComplyAdvantage team, Binance facilitated over $100 billion in illicit transactions, including those evading Russian sanctions post-Ukraine invasion. Binance founder Changpeng Zhao, who pleaded guilty in 2023, faced extended monitoring as part of the 2025 escalation. US Treasury Secretary Janet Yellen stated:
“Binance’s operations served as a haven for criminals, underscoring the need for stringent crypto AML rules.”
Revolut, the UK-based fintech, was hit with a £98 million FCA fine for exposing customers to sanctions risks. FCA Executive Director of Enforcement Therese Chambers said:
“Revolut’s inadequate due diligence allowed high-risk clients, including those linked to Iran and North Korea, to onboard unchecked.”
The ComplyAdvantage report details how Revolut’s rapid growth outpaced its compliance capabilities, processing suspicious payments worth £500 million.
Other Major Fines Across Sectors
Standard Chartered paid $1.1 billion to settle probes into sanctions breaches involving Iran, Syria, and North Korea, as per ComplyAdvantage’s compilation. Bill Hughes, Global Head of Financial Crime at Standard Chartered, acknowledged:
“We accept responsibility and have invested £1.3 billion in compliance enhancements.”
In Asia, HSBC faced a HK$3.2 billion penalty from Hong Kong regulators for laundering controls failures related to South American drug syndicates. HKMA Chief Executive Eddie Yue remarked:
“HSBC’s lapses highlight the importance of tailored risk assessments in high-volume jurisdictions.”
The ComplyAdvantage insights team reported similar issues at Westpac, fined AUD 1.3 billion by AUSTRAC for 23 million unreported transactions.
Smaller but notable fines included PayPal’s $15 million CFTC settlement for AML gaps in crypto services and Wise’s £7 million FCA penalty for deficient transaction screening. ComplyAdvantage noted:
“Fintechs’ agility often compromises robust AML frameworks.”
Regulatory Trends and Enforcement Actions
The ComplyAdvantage report identifies a 40% year-on-year increase in fines, driven by AI-enhanced detection and international cooperation via the Egmont Group. US regulators alone imposed $4.2 billion, with FinCEN Director Andrea Gacki emphasising:
“2025 enforcement prioritises corporate accountability over deferred prosecution agreements.”
In the UK, the FCA’s 2025 Annual Report, referenced by ComplyAdvantage, signalled tougher stances post-Brexit.
EU’s 6th AML Directive, effective January 2025, mandated stricter beneficial ownership registries, influencing fines like Commerzbank’s €1.5 billion for Russian sanctions evasion. Bundesbank President Joachim Nagel stated:
“German banks must adapt swiftly to geopolitical shifts.”
Financial institutions responded with massive compliance investments. TD Bank’s CEO Bharat Masrani announced:
“We are committing $2 billion to technology upgrades and staff training.”
Global bodies like the Financial Action Task Force (FATF) praised the trend in its December 2025 plenary, stating:
“Record fines validate mutual evaluation progress.”
Experts predict sustained pressure into 2026. ComplyAdvantage analyst Danielle Chubb commented:
“Emerging risks in DeFi and AI-driven laundering will drive fines higher unless firms adopt real-time monitoring.”
The Basel AML Institute’s 2025 survey found 72% of banks planning 20% budget hikes for compliance.
This exhaustive enforcement wave reinforces AML as a cornerstone of financial stability. As global illicit flows—estimated at $2 trillion annually by UNODIR—persist, regulators vow unrelenting vigilance.