- Global enforcement fines rose to $5.65 billion in Q3 2023, marking a 30% increase from the year’s start.
- Q1 and Q2 fines were $1.5 billion and $2.27 billion, respectively.
- In Q3, 85% of global fines came from US regulators, including a $25 million penalty to Deutsche Bank subsidiary DWS Investment Management Americas.
- Regulatory focus areas: Risk management deficiencies, exemplified by UBS Group and Credit Suisse paying $388 million related to dealings with Archegos Capital Management.
- Financial crime and corporate governance top enforcement activity, with increased fines for fraud, money laundering, and terrorist financing.
- Regulators emphasize the importance of robust AML systems to address the growing threat of money laundering.
- Growing focus on culture, conduct, and ethics failures; Bank of America fined $140 million by the US Consumer Protection Financial Bureau in July.
- Evgeny Likhoded, Corlytics president, emphasizes the need for technology to enhance regulatory compliance and change management due to current challenges in creating effective compliance programs.
