AML Failures Lead to Record Fines for Major European Bank

In Q2 2024, a leading European bank was fined €1.2 billion following revelations of significant anti-money laundering (AML) deficiencies. A multi-year investigation uncovered that the bank had failed to monitor high-risk accounts, especially those involving politically exposed persons (PEPs), and had inadequate transaction monitoring systems. Authorities noted that the bank ignored multiple red flags, including large transfers from sanctioned regions. The fine, one of the largest in history, served as a stark warning to financial institutions about the consequences of weak compliance programs. The case underscored the importance of a risk-based approach to AML and the need for regular audits and staff training.