American regulators reported a significant decline in money laundering and sanction breach fines in 2025, with a reduction of 61% compared to the previous year. According to a report published on December 31 by the Financial Times, this decrease is linked to a shift towards a more lenient regulatory environment under the administration of former President Donald Trump.
As of December 19, total fines imposed on companies for violations related to money laundering and sanctions amounted to just below $1.7 billion. In contrast, the fines for 2024 had reached $4.3 billion, reflecting a dramatic drop in enforcement actions. The data cited in the report originates from compliance software provider Fenergo, which tracks financial penalties.
In his second term, President Trump directed financial regulators to adopt a business-friendly approach, resulting in a notable reduction in investigations, particularly concerning cryptocurrency companies. This trend aligns with a global increase in penalties for similar violations, particularly in countries such as France, Switzerland, the United Kingdom, Canada, and the United Arab Emirates. Despite this international uptick, overall worldwide penalties in this domain fell by 19% year-over-year to $3.7 billion.
Shift in Regulatory Focus
Daniel Stipano, head of anti-money laundering (AML) at law firm Davis Polk and a former senior official at the Office of the Comptroller of the Currency, commented on the situation, stating, “There has definitely been a decrease in the number and magnitude of AML-based enforcement actions in the US during the past year.” He attributed this reduction largely to policy changes, although he noted that the figures from the previous year were disproportionately influenced by a single case involving Canada’s TD Bank, which settled for a staggering $3 billion penalty.
Rory Doyle, head of financial crime at Fenergo, suggested that the decline in penalties could also be linked to the 43-day government shutdown and subsequent job cuts at various regulatory agencies. Additionally, he indicated that the current administration’s openness towards cryptocurrency may have further affected the enforcement landscape.
Recent discussions have highlighted the administration’s intention to give the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) the authority to override other regulators’ decisions regarding violations of the Bank Secrecy Act. This proposed change aims to ensure that regulators prioritize essential aspects of banks’ anti-money laundering efforts over minor compliance details.
Future of AML Enforcement
At a recent meeting of the Financial Stability Oversight Council, Comptroller of the Currency Jonathan V. Gould reaffirmed the Office of the Comptroller of the Currency’s commitment to continuing its AML reforms into 2026. This suggests a potential shift in focus as regulatory bodies reassess their strategies in the evolving financial landscape.
The decline in fines raises important questions about the effectiveness of current regulatory measures and the potential implications for global financial oversight. As the landscape continues to evolve, stakeholders will be closely monitoring the actions of U.S. regulators and their counterparts worldwide.