Regulatory authorities in the United States have reported a dramatic decline in fines related to money laundering and sanctions violations, with penalties falling by 61% in 2025. According to a report published by the Financial Times on December 31, this significant drop is attributed to a shift toward a more lenient regulatory environment under the leadership of Donald Trump.
As of December 19, total fines imposed on corporations for violations of anti-money laundering (AML) and sanctions regulations amounted to just under $1.7 billion. This marks a sharp decrease from the previous year, when fines totaled approximately $4.3 billion. The Financial Times cites data from compliance software provider Fenergo to support these figures.
In his second term, President Trump has encouraged financial regulators to adopt a more business-friendly approach, resulting in a noticeable reduction in enforcement actions. Notably, investigations involving cryptocurrency companies have been scaled back, contributing to the overall decline in penalties.
Global Trends Contrast with US Decline
Interestingly, while fines for violations in the U.S. have diminished, other countries have seen an increase in penalties related to financial crimes. The Financial Times reports that France, Switzerland, the United Kingdom, Canada, and the United Arab Emirates have all raised their sanctions and AML fines, although these increases have not compensated for the downturn observed in the United States. Overall, global penalties in this sector fell by 19% year-over-year to $3.7 billion.
Daniel Stipano, head of AML at law firm Davis Polk and a former senior official at the Office of the Comptroller of the Currency, noted, “There has definitely been a decrease in the number and magnitude of AML-based enforcement actions in the U.S. during the past year.” Stipano attributed this trend largely to policy changes, although he acknowledged that the previous year’s figures were heightened by a singular case involving TD Bank, which agreed to a $3 billion penalty.
Impact of Administration Policies
Rory Doyle, head of financial crime at Fenergo, highlighted additional factors contributing to the decline in penalties. He suggested that the 43-day government shutdown and subsequent job cuts at regulatory bodies may have influenced enforcement actions. Furthermore, the administration’s supportive stance toward cryptocurrency could have led to a more relaxed approach to regulatory oversight.
Recent discussions indicate that the administration is seeking to enhance the authority of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Proposed changes would allow FinCEN to veto determinations made by other regulators regarding violations of the Bank Secrecy Act. This shift aims to ensure that regulatory efforts focus on critical components of banks’ AML initiatives rather than purely technical compliance.
In a recent meeting of the Financial Stability Oversight Council, Jonathan V. Gould, the Comptroller of the Currency, expressed a commitment to continuing AML reforms into 2026, signaling ongoing efforts to reshape the regulatory landscape in the United States.
The sharp decline in money laundering and sanction fines in the U.S. reflects a broader trend of deregulation, raising questions about the future of financial oversight in the country. As global penalties rise in other regions, the effectiveness of U.S. regulatory practices and their alignment with international standards may come under increased scrutiny.
