Financial Crime World

Record-Breaking Financial Crime Fines: A Closer Look at the Biggest Cases

Subtitle

Discover the most significant penalties imposed on institutions and individuals in the world of finance for bribery, money laundering, and other financial crimes.

Introduction

Monetary fines have emerged as a common yet significant punishment in the realm of financial crime. As regulatory bodies intensify their efforts to root out illicit activities, the costs of non-compliance continue to escalate. In this article, we delve into the biggest financial crime cases, exploring the fines that have made headlines and set new records.

Highest Anti-Money Laundering Fine: Binance

  • Binance, the world’s largest cryptocurrency exchange by trading volume, paid a hefty fine of $100 million in 2022
  • Settled charges of violating anti-money laundering (AML) regulations
  • Regulatory bodies included the U.S. Commodity Futures Trading Commission (CFTC) and the U.K.’s Financial Conduct Authority (FCA)

Biggest Foreign Bribery Case: Odebrecht

  • Brazilian construction company Odebrecht paid a record-breaking fine of $2.6 billion in 2016
  • Resolved bribery charges with the U.S. Department of Justice and the Securities and Exchange Commission (SEC)
  • Confessed to paying approximately $788 million in bribes throughout Latin America

Biggest UK Criminal Enforcement Fine: Rolls-Royce

  • British engineering giant Rolls-Royce paid a £671 million penalty in 2017
  • Ended a deferred prosecution agreement concerning bribery and corruption
  • One of the largest enforcement actions ever undertaken by the U.K. Serious Fraud Office

Most Significant FCA Penalty: Deutsche Bank

  • German heavyweight Deutsche Bank was hit with a record-breaking fine of €10 million in 2017 by the FCA
  • Penalty for London Interbank Offered Rate (Libor) rigging
  • Part of a global settlement with regulatory bodies across the world

First FCA Fine for AML Failures: NatWest

  • Ahead of new Money Laundering Regulations, NatWest became the first financial institution to face an FCA penalty for Anti-Money Laundering (AML) lapses
  • Ordered to pay £364,000 in 2016
  • Findings that NatWest failed to identify potential money laundering risks in customer transactions

Largest FCA Breach of Rules Fine: Barclays Bank

  • Barclays had to pay a hefty penalty of £59.5 million in 2013 for breaching FCA rules
  • Concerns that the financial services giant misrepresented the risks associated with interest rate protection products

Biggest Money Laundering Scandal: Danske Bank

  • Danske Bank disclosed a €200 billion money laundering scandal in 2018
  • Sparked a global investigation into the Danish bank’s dealings with Non-Resident Indians (NRIs)
  • Potential for significant fines from multiple regulatory bodies

Biggest Ongoing Corruption Case: Shell & Eni

  • Anglo-Dutch oil giants Shell and Eni currently under investigation for a massive bribery scandal
  • Role in acquiring Nigeria’s OPL 245 oil field
  • Potential for billions in penalties from the U.S. Department of Justice, the SEC, and various European countries

Looking Ahead

  • Regulatory bodies up their game and aim for deterrent fines
  • Fifth Money Laundering Directive (5MLD) and continued desire to impose fines on individuals responsible for corporate misconduct
  • Fascinating, if not nerve-wracking, future for the financial landscape.