Money Laundering Fines and Punishments by Country: A Global Overview

By ThetaRay writer 11 months agoNo Comments
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With governments and regulatory bodies worldwide cracking down, financial institutions have a responsibility to ensure that transactions are safe and secure from money laundering, a pervasive financial crime with severe consequences for local and global economies. Understanding the potential damage money laundering can cause a business is key to determining your AML strategy and investment. 

In this blog post, we provide a partial overview of the penalties and punishments for failure to comply with AML regulations:

Europe:

United Kingdom: Unlimited fines and a prison term of up to two years

Germany: Fines up to €5 million or 10% of annual turnover (whichever is greater)

France: Fines up to €5 million for individuals, and €100 million or 10% of annual turnover for legal entities

Italy: Fines up to €5 million or double the value of the illicit transaction

Spain: Fines up to €5 million or 10% of annual turnover (whichever is greater)

Netherlands: Penalties include fines up to €5 million or 10% of annual turnover (whichever is greater)

Switzerland: Fines up to CHF 5 million or up to 10% of the annual turnover

Sweden: Penalties include fines up to SEK 10 million or 10% of the illicit operation’s value

Denmark: Fines up to DKK 10 million or up to 10% of the annual turnover

Belgium: Penalties include fines up to €1.25 million or up to 10% of the annual turnover

Africa:

South Africa: Penalties include fines up to ZAR 100 million or twice the value of the transaction

Nigeria: Fines up to NGN 25 million or 10% of the annual turnover (whichever is greater)

Kenya: Penalties include fines up to KES 1 million or imprisonment for up to 3 years

Egypt: Fines up to EGP 100 million or twice the value of the illicit funds involved

Morocco: Penalties include fines up to MAD 5 million or double the amount of illicit funds involved

Algeria: Fines up to DZD 20 million or up to double the amount of the illicit operation

Tunisia: Penalties include fines up to TND 2 million or twice the amount of illicit funds involved

Ghana: Fines up to GHS 10 million or imprisonment for up to 10 years

Angola: Penalties include fines up to AOA 100 million or up to 10% of the annual turnover

Ivory Coast: Fines up to XOF 100 million or twice the amount of the illicit funds involved

South America:

Brazil: Penalties include fines up to BRL 20 million or up to 2% of the company’s gross revenue

Argentina: Fines up to ARS 150 million or twice the amount of the illicit funds involved

Colombia: Penalties include fines up to COP 3 billion or 10% of the illicit transaction’s value

Chile: Fines up to CLP 10 million or up to twice the amount of the illicit funds involved.

Peru: Penalties include fines up to PEN 10 million or 10% of the illicit operation’s value

Venezuela: Fines up to VES 1 billion or up to 10% of the annual turnover

Ecuador: Penalties include fines up to USD 3 million or up to 10% of the annual turnover

Uruguay: Fines up to UYU 5 million or imprisonment for up to 10 years

Please note that these penalties may vary depending on the specific regulations in each country, and it’s essential to refer to the local authorities for the most accurate and up-to-date information.

To avoid money laundering penalties and repercussions, banks and fintechs should implement robust, effective, and modern AML solutions which can detect anomalies of all types, including unknown-unknowns.

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