Crypto Financial Institutions Urged to Take AML Compliance Seriously 

AML (Anti Money Laundering) and Compliance

A financial crime report issued by Fenergo – a leading provider of digital solutions for client lifecycle management (CLM) – features annual figures on global financial institution penalties. The report covered enforcement actions for non-compliance with a range of regulations and shows that anti-money laundering fines globally surged by 53 per cent in 2022, and those for crypto fines rose by over 90 per cent.

Regulators globally have been making it explicitly clear that they are cracking down on financial misconduct with further focus on individuals with AML responsibility. In the UK, the Financial Conduct Authority (FCA) is following suit, adapting its approach to issuing anti-money laundering penalties to focus more on individuals responsible for anti-money laundering compliance. The report highlighted that five of the 14 fines in 2022 by the FCA were issued to specific individuals, whereas none were issued the previous year.

Fines for Crypto Financial Institutions 

Crypto companies face increased pressure to remain compliant now that this sector has attracted greater regulatory scrutiny. In 2022 total global fines to crypto firms and their employees rose 92 per cent to $193m. The Commodity Futures Trading Commission issued the largest individual fines to three co-founders of the crypto exchange BitMEX, totalling $30m for anti-money laundering and other violations.

Commenting on the findings, Rory Doyle – Financial Crime Policy Manager at Fenergo, said: “Our data highlights interesting patterns emerging from the crypto industry which is attracting mounting regulatory scrutiny.”

“While we are seeing a higher standard of compliance across established financial institutions, the crypto industry has a lot of catching up to do.”

Managing Risk Exposure 

Part of the Anti-Money Laundering (AML) Regulations require a business to undertake a formal risk assessment. The predominant purpose of this is to identify, manage and, where possible, eradicate the potential for the business to be caught up in money laundering, and cryptocurrency considerations form part of this.

Regardless of the size of your business and the complexity of your structure, a risk assessment must be performed. At AML and Compliance, we can support you with this and work with businesses of all sizes and across all sectors and multi jurisdictions.

A risk assessment provides valuable insight into a business when performed correctly. Along with an overview of risk, these crucial assessments also highlight issues within the business, so it is essential to undertake a risk assessment properly. The many aspects that form a company’s building blocks need to be considered, such as its staff, clients, operations, and finances.

By working with AML and Compliance, a business can be assured that we will bring the required level of knowledge and expertise needed to perform a risk assessment which has value to the business and is not simply a box-ticking exercise. Our team can also provide a full range of services that include:

Our services focus on businesses’ Anti Money Laundering and Regulator requirements through the implementation of effective policies, procedures, training, and consultancy.

Get In Touch with Our Compliance Specialists

To enquire about our risk assessment services and how AML and Compliance can work with your business, call us on 0203 985 8553, email us or complete an enquiry form. Click here for more information about our services.

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