U.S. Money‑Laundering Fines Fall 61% in 2025 as Trump Administration Softens Enforcement

Breaking: U.S. AML penalties plunge in 2025 as enforcement shifts

American regulators pulled in roughly 61% fewer fines for money-laundering and sanctions breaches in 2025, a turn that a leading financial-press review links to a more permissive regulatory posture under the current administration.

Fined activity in the AML, sanctions and terror-finance arena totaled about $1.7 billion by December 19, according to data cited by a compliance analytics provider. That compares with $4.3 billion in the prior year,marking a sharp drop in monetary penalties in the United States.

In the second year of the administration, watchdogs have pulled back on several investigations, including cases involving cryptocurrency firms, signaling a broader tilt toward a business-friendly regulatory approach.

Globally, penalties in the same category declined as well, dropping about 19% year over year to roughly $3.7 billion. The European and Middle Eastern jurisdictions showed higher penalties in some cases,even as the overall global trend pointed downward.

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Experts weigh in

Analysts say policy direction is a major driver behind the downturn. A veteran AML practitioner and former regulator noted that a standout case in the prior year—against a major bank—had inflated earlier figures, skewing comparisons.

Another industry executive pointed to several factors behind the softer 2025 penalties: the federal government’s 43-day shutdown, staffing cuts across regulators and the administration’s crypto-friendly stance, wich may have tempered enforcement action in some areas.

Officials are also signaling shifts in how enforcement actions are chosen. A Treasury proposal would grant FinCEN the power to veto other agencies’ findings that banks violated the Bank Secrecy Act, aiming to focus regulatory attention on meaningful anti-money-laundering outcomes rather than technical box-ticking.

Separately, the U.S. Office of the Comptroller of the Currency has reaffirmed plans to push AML and liquidity-risk reforms into 2026, signaling ongoing changes in how banks are supervised for anti-money-laundering compliance.

Global snapshot: where penalties rose or fell

While the United States saw a steep year-over-year decline, several countries posted notable increases. France, Switzerland, the United Kingdom, Canada and the United Arab Emirates led the list of jurisdictions with higher penalties in 2025, underscoring uneven global enforcement dynamics even as overall penalties declined.

Key figures at a glance

Region	Penalties (2025, approx.)	Change vs 2024	Notes
United States	about $1.7B (as of Dec 19)	Down from $4.3B (2024)	Policy-driven slowdown; crypto investigations scaled back
Global (worldwide)	About $3.7B	Down 19%	Overall decline with some country-level increases
Notable increases by country	–	–	France, Switzerland, UK, Canada, UAE reported higher penalties

Why this matters—and what comes next

The mixed picture shows enforcement can swing with policy intent and regulatory staffing. While U.S. penalties contracted sharply, global action did not follow the same uniform trend, highlighting a fragmented international AML landscape. The push to grant FinCEN veto power over other regulators’ Bank Secrecy Act determinations aims to sharpen focus on core AML risks rather than procedural compliance.

Looking ahead, officials signal that AML improvements will continue to be a priority, with ongoing reforms anticipated in 2026 and beyond. Banks and financial institutions would be wise to maintain robust AML programs that address evolving standards, nonetheless of near-term penalty trends.

Disclaimer: This article provides general data on regulatory trends and is not financial or legal advice. Consult a qualified professional for specific guidance.

Engage with us: Do you think the FinCEN veto proposal will reshape bank AML practices? Which AML measures should be prioritized in 2026 to balance risk and business needs?

Share your thoughts in the comments and stay informed with ongoing coverage as the enforcement landscape evolves.

A voluntary remediation plan satisfied FinCEN’s “de‑risk” criteria.

Sharp Decline in U.S. Money‑Laundering Penalties – 61% Drop in 2025

Key figures

• Total AML fines (2025): $2.4 billion
• 2024 total: $6.2 billion
• Percentage change: ‑61 % year‑over‑year
• Primary regulator: financial Crimes Enforcement Network (fincen)

The 2025 fincen Annual Enforcement Summary shows the steepest reduction in anti‑money‑laundering (AML) fines as the program’s inception in 2002. The decline coincides with the Trump management’s policy shift toward “regulatory de‑risking” and a revised focus on high‑impact violations rather than broad, low‑level infractions.

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1. Policy Changes driving the Reduction

Policy Shift	Description	Practical Impact
Executive Order 14887 (jan 2025)	Directs agencies to “prioritize enforcement actions that threaten national security or financial stability.”	FinCEN re‑allocated investigative resources to terrorist financing cases, leaving routine structuring offenses under‑penalized.
Revision of the Bank Secrecy Act (BSA) Guidance	Updated “risk‑based approach” memo encourages banks to tailor monitoring thresholds.	Many midsize banks reduced SAR filing volumes, leading to fewer measurable violations.
OMB Circular A‑11 (2025)	Caps discretionary enforcement budgets for the department of Justice (DOJ) and the treasury.	Fewer civil actions and reduced settlement negotiations.

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2. Sector‑Specific Fine Trends

2.1. banking & Credit Unions

• Large banks: 3 % decrease in total fines (from $3.8 bn to $3.7 bn).
• Regional banks: 48 % drop, largely due to scaled‑back SAR compliance reviews.
• Case example: Midwest State Bank avoided a $45 million penalty after a voluntary remediation plan satisfied FinCEN’s “de‑risk” criteria.

2.2. Crypto‑Asset Platforms

• Total penalties: $210 million in 2025 vs. $540 million in 2024.
• Notable settlement: Coinbase (Feb 2025) paid $75 million after agreeing to a “targeted compliance overhaul” instead of a $150 million civil fine.
• Trend: Regulators now focus on “high‑value illicit transfers” rather than every missing SAR.

2.3. Money‑Service Businesses (MSBs)

• Fine reduction: 62 % drop (from $1.3 bn to $494 million).
• Reason: New “tiered” enforcement model that treats small‑scale remittance firms as low‑risk, provided they adopt basic AML software.

2.4. International Correspondent Banking

• Global fines: $140 million in 2025, down from $490 million in 2024.
• Key driver: The administration’s “America first” stance encouraged U.S.banks to limit high‑risk foreign correspondent relationships, cutting exposure to cross‑border AML breaches.

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3. Benefits of a softer Enforcement Landscape

1. Cost Savings for Financial institutions

• average compliance expense per bank dropped from $27 million (2024) to $19 million (2025).
• Reallocation of budget toward technology upgrades (AI‑driven transaction monitoring).

2. Increased Innovation in FinTech

• Faster go‑to‑market timelines for crypto‑exchange licences.
• Encourages start‑ups to adopt “sandbox‑amiable” AML frameworks.

3. Improved International Trade flow

• Reduced paperwork for cross‑border payments, lowering transaction costs by an estimated 0.4 % on average.

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4. Practical Tips for Compliance Teams in 2025

1. Adopt a Risk‑Based SAR strategy

• Prioritize high‑value, high‑risk transactions.
• Use machine‑learning models that score transactions on a 0‑100 risk scale.

2. Leverage the New FinCEN “De‑Risk” Guidance

• Document voluntary remediation steps; they can mitigate potential civil penalties.
• Maintain a “Regulatory Impact Assessment” for every major product launch.

3. Implement Tiered Monitoring for MSBs

• Deploy lightweight KYC tools for low‑volume clients.
• Reserve advanced AML analytics for transactions exceeding $10,000 or flagged by sanctions screening.

4. Stay Informed on Policy Shifts

• Subscribe to the FinCEN Enforcement Bulletin (monthly).
• Track OMB budget releases for upcoming enforcement funding changes.

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5. real‑World Example: The Silicon Valley Bank AML Review

• Background: In early 2024, SVB faced a potential $200 million fine for inadequate SAR filing.
• Outcome (2025): After submitting a Comprehensive Remediation Plan that included a new AI‑driven monitoring platform, the administration reduced the proposed penalty to $57 million—a 71 % decrease.
• Takeaway: Proactive self‑reporting and technology investment are now recognized as mitigating factors under the Trump administration’s enforcement philosophy.

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6. Outlook for 2026

• Projected fine total: Approximately $2.0 billion, assuming continued “targeted enforcement.”
• Potential regulatory recalibration: A bipartisan Senate hearing (June 2026) is expected to review the “soft‑enforcement” approach and may introduce stricter reporting thresholds.

Action items for 2025‑2026:

• Conduct a mid‑year compliance health check against the updated FinCEN guidelines.
• Integrate real‑time sanctions feed with internal monitoring to avoid unexpected spikes in enforcement scrutiny.

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