Global financial institutions faced heightened regulatory scrutiny as total fines imposed on banks rose to $4.5 billion in 2024, according to new data compiled by Finbold.
The surge in penalties was driven primarily by anti-money laundering (AML) violations, weak internal controls and compliance failures across key financial hubs.
Leading the list of penalised institutions was Toronto-Dominion Bank (TD Bank), which paid a staggering $3.09 billion following a multi-agency investigation into deficiencies in its U.S. subsidiary’s AML framework.
The penalty alone accounted for nearly 69% of the total fines recorded in the sector this year.
JPMorgan Chase & Co. followed with a fine of $348.2 million, issued for long-standing compliance gaps in its market surveillance program.
Regulators found that the bank failed to adequately monitor firm and client trading activities for market misconduct over a span of nearly a decade, from 2014 to 2023.
The penalty was announced on March 13, revealing the danger of historical oversight lapses.
In Europe, HSBC faced a $74.12 million fine levied by the UK’s Prudential Regulation Authority (PRA) in January for failing to implement adequate depositor protection systems.
The UK ranked second globally in total penalties with $261.68 million across ten fines, trailing only the United States.
Swedish regulators also handed out a $46 million fine to Klarna Bank AB in late 2024 over anti-money laundering shortcomings.
The penalty comes just months before Klarna’s planned initial public offering in 2025, intensifying the pressure on the fintech firm to tighten its compliance posture.
The United States maintained its dominant position in global enforcement actions, accounting for $4.08 billion—or 90.67%—of the total penalties, across 19 cases.
Despite representing only one-third of the total number of fines issued globally, the average value of U.S. penalties was significantly higher, reflecting the scale of infractions and the rigorous approach of American regulators.
“While the U.S. issued just 33% of the total number of fines, it accounted for the overwhelming majority in value terms,” said Andreja Stojanovic, co-author of the report. “This signals both the size of the U.S. banking sector and the assertiveness of its regulatory agencies.”
Interestingly, China—despite being the world’s second-largest economy—ranked fifth, levying only $31.22 million in penalties across three fines.
This placed it behind Sweden and Finland in total fine value, raising questions about the scope of regulatory enforcement in the region.
The top ten countries by total fines in 2024 included Australia ($20.51 million), Belgium ($11.24 million), Germany ($9.94 million), Canada ($8.14 million), and Spain ($6.70 million).
As AML compliance, data transparency, and risk governance gain prominence, analysts expect regulators to maintain pressure on banks to strengthen internal systems and reporting mechanisms.
The rising penalties also reflect a broader shift toward accountability and the need for financial institutions to align with evolving global standards.
With enforcement trends likely to continue in 2025, financial institutions may face mounting pressure to invest in risk management, compliance infrastructure, and regulatory technology to avoid costly penalties and reputational damage.
