Fines from global regulators for financial violations surge in 2023-Zhen Huicha

Fines from global regulators for financial violations surge in 2023

2024-02-18 16:05:39

abstract：2023 saw a surge in enforcement actions by financial regulators around the world, particularly in the United States. An analysis covers penalties imposed by regulators including the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trad

2023 saw a surge in enforcement actions by financial regulators around the world, particularly in the United States. An analysis covers penalties imposed by regulators including the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the U.K.'s Financial Conduct Authority (FCA) and France, Germany, the Netherlands and Singapore. The findings paint a worrying picture of escalating compliance failures across the financial services industry.

The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) have issued a combined $9.2 billion in fines, according to SteelEye's annual fines tracker report. This number includes 32 fines specifically targeting insider trading, an unprecedented CFTC fine of $4.3 billion.

Fines from global regulators for financial violations surge in 2023

Fines from global regulators for financial violations surge in 2023

The SEC also filed a total of 784 enforcement actions in 2023, an increase of 3% from the previous year. This coordinated effort means a crackdown on smaller companies, as evidenced by a 17% increase in CFTC actions compared to 2022. In Europe, the picture for regulatory action is mixed. The amount of fines imposed by the British FCA has dropped significantly for the first time in seven years, with only 8 fines totaling 52.8 million pounds.

France’s Financial Market Authority (AMF) remains firm. The AMF issued fines totaling €127.9 million, including a hefty €26 million for market manipulation. Germany's financial regulator BaFin and the Federal Office of Justice issued a total of 40 fines in 2023, a 13% decrease from the previous year.

In Singapore, the Monetary Authority of Singapore demonstrated its commitment to combating financial misconduct by imposing fines totaling S$7.7 million. The penalties target breaches of anti-money laundering requirements and misconduct by relationship managers, highlighting the global nature of regulatory scrutiny.

The SteelEye report highlights the growing trend for regulators to enhance their technology capabilities to keep up with the ever-changing compliance breach landscape. For regulators around the world to create and maintain robust, stable and secure financial markets, the ability to process large amounts of data has become critical.

Article Source：Forex website

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