U.S. regulators collected 61% less in fines related to money laundering and sanction breaches in 2025, reflecting a significant shift in enforcement under the current administration. According to a report by the Financial Times published on December 31, 2025, total penalties for violations concerning what is termed “dirty money” amounted to just under $1.7 billion as of December 19. This marks a stark decrease from the $4.3 billion recorded the previous year.
The report attributes this drop to a more lenient regulatory environment instigated by President Donald Trump, particularly during his second term. Financial regulators have adopted a business-friendly approach, leading to a notable reduction in investigations, especially concerning cryptocurrency firms. This shift represents a departure from previous practices aimed at stringent enforcement of anti-money laundering (AML) and sanctions regulations.
Global Context of Regulatory Penalties
While U.S. penalties have declined, the Financial Times notes a contrasting trend globally, with countries such as France, Switzerland, the U.K., Canada, and the United Arab Emirates increasing their financial crime penalties. Despite these global increases, overall worldwide penalties in this sector fell by 19% year-over-year to $3.7 billion, indicating a complex international landscape for enforcement.
Daniel Stipano, head of AML compliance at the law firm Davis Polk and a former senior official at the Office of the Comptroller of the Currency, commented on the situation. “There has definitely been a decrease in the number and magnitude of AML-based enforcement actions in the U.S. during the past year,” he stated. Stipano pointed out that last year’s figure was heavily influenced by a single high-profile case involving TD Bank, which faced a $3 billion penalty for a significant money-laundering violation.
Factors Influencing Regulatory Changes
Several factors may have contributed to the decline in enforcement actions. Rory Doyle, head of financial crime at Fenergo, suggested that the recent 43-day government shutdown and job cuts at regulatory bodies could have impacted the ability to pursue cases effectively. Additionally, the administration’s growing acceptance of cryptocurrency may have influenced the reduction in penalties.
Amid these changes, the U.S. Treasury Department is proposing to enhance the authority of the Financial Crimes Enforcement Network (FinCEN). The proposed adjustments would allow FinCEN to override other regulators in determining whether a bank has violated the Bank Secrecy Act. This initiative aims to ensure a focus on critical aspects of anti-money laundering efforts rather than just technical compliance.
In a recent meeting of the Financial Stability Oversight Council, Jonathan V. Gould, Comptroller of the Currency, emphasized the OCC’s commitment to continuing its AML reforms through 2026. As the regulatory landscape evolves, stakeholders will be closely monitoring how these changes impact enforcement and compliance in the coming years.
