Singapore recorded a 579 percent rise in AML and CFT fines issued by the central bank last year.
The sharp increase reflects a shift in regulatory scrutiny after a major money laundering scandal exposed weaknesses in parts of the financial system.
New data from regtech firm Fenergo shows that global penalties for breaches of anti-money laundering, know your customer, sanctions and customer due diligence rules fell 18 percent in 2025 to US$3.8 billion.
This compares with US$4.6 billion in 2024 and US$6.6 billion in 2023.
Despite the overall decline, enforcement activity varied widely by region.
North American regulators reduced the total value of fines by 58 percent, while Europe, the Middle East and Africa saw penalties climb 767 percent.
Asia-Pacific also recorded higher fines, up 44 percent, as long-running investigations concluded and authorities increased oversight in targeted sectors.
In Singapore, the Monetary Authority of Singapore focused more attention on private banking and cross-border wealth flows following the high-profile laundering case.
“In Singapore, enforcement action has intensified following a major money laundering scandal.
In response, the Monetary Authority of Singapore (MAS) has tightened its focus on private banking and cross-border wealth flows, with a clear aim of positioning the city-state as a global leader in source of wealth (SOW) and source of funds (SOF) enforcement.”
said Rory Doyle, Head of Financial Crime Policy at Fenergo.
The largest individual penalty in 2025 was a €835 million fine, equivalent to about US$985 million, issued by French authorities to a Swiss bank for anti-money laundering failures.
That helped make France the second-largest global enforcer by fine value, behind the United States.
The report also found that digital asset firms remained overrepresented among the largest penalties, accounting for nearly a quarter of the top ten fines.
Fenergo said rapid growth in transaction volumes and stablecoin usage has continued to outpace compliance maturity in parts of the sector, prompting regulators to push firms to adopt controls closer to bank standards.
Featured image: Edited by Fintech News Singapore, based on image by aghavni001 via Freepik
