Global enforcement fines rise to $5.65bn in Q3 2023

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.