AI-driven solutions for Know Your Customer (KYC), transaction surveillance, and Contract Lifecycle Management (CLM) have been spotlighted by Fenergo in its half-yearly report on global financial institution enforcement actions.
Globally Higher Regulatory Penalties
According to Fenergo’s data, the total value of regulatory penalties imposed on financial institutions worldwide more than quadrupled from the first half of 2024 to the same period in 2025. This surge is largely attributed to contributions from digital asset companies.
During this period, regulatory bodies issued approximately 139 penalties, amounting to a total of USD 1.23 billion, marking a staggering 417% increase compared to the previous year when 118 fines were levied at a value of USD 238.6 million.
The majority of these penalties were for issues related to Anti-Money Laundering (AML), KYC, sanctions violations, Suspicious Activity Reports (SARs), and transaction monitoring mishaps.
Stricter Penalties in the United States
The U.S. Department of Justice (DOJ) imposed some of the heftiest fines during this period, particularly on cryptocurrency exchanges. OKX paid over USD 504 million after pleading guilty to failing to maintain an effective AML program in February 2025. BitMEX also faced significant penalties for similar misconduct, with a fine of USD 100 million from the DOJ.
North American Regulators’ Stance
Regulatory penalties in North America witnessed a substantial increase, totaling over USD 1.06 billion, representing a significant 565% rise compared to the same period last year.
EMEA and APAC Trends
While EMEA saw an increase in penalties by about 147%, rising from USD 68 million to USD 168.2 million, the penalties issued in Asia Pacific (APAC) saw a decline, with authorities issuing fines totaling only USD 3.4 million compared to USD 10.7 million in the previous year.
Sanctions Failures on the Rise
Fines related to sanctions compliance failures also saw a notable increase, with penalties amounting to USD 228.8 million during this period, compared to just USD 3.7 million in the first half of 2024.
These findings underscore Fenergo’s observation that increased regulatory scrutiny around sanctions compliance is becoming a global trend, driven by heightened geopolitical tensions and evolving sanctions regimes.
