Money laundering is a complex topic that includes such issues as criminal enterprise, tax evasion, terrorist financing, and international sanctions. But what is clear about money laundering is that is illegal in all its forms.
US regulators in particular have stepped-up their efforts to combat money laundering, and it is now the most common issue that regulators punish banks for.
The primary form of punishment has been monetary fines that routinely reach in the billions of dollars. And the growth of these fines has been eye-watering with a compound annual growth rate of 187% for the period running from the beginning of 2007 to the third quarter of 2014. Regulators have also imposed a series of non-monetary penalties, including the suspension of US dollar clearing licenses, and a push to fire and fine bank employees.
The infographic below outlines the scope of the money laundering problem, the total fines that are being assessed, and the hidden costs of noncompliance which can be many times larger than the fines themselves.
CEB TowerGroup Commercial Banking has a number of tools, reports, blog posts, and webinars on these topics to help banks and financial services vendors understand what needs to be done to protect the financial system from money laundering activity – and – the potential penalties for failing to do so.