U.S. Money-Laundering Fines Plunge 61% in 2025 as Enforcement Takes a Softer Turn

In a dramatic shift in financial crime enforcement, the United States saw a 61% drop in fines for money-laundering and sanctions breaches in 2025 compared with the previous year. American regulators collected roughly $1.7 billion in penalties by mid-December, a sharp decline from $4.3 billion in 2024, according to data compiled by compliance analytics firms and reported by the Financial Times.

The steep reduction in penalties reflects a more lenient enforcement environment under the current U.S. administration, which has directed financial watchdogs to adopt a business-friendly and risk-based regulatory approach. According to compliance experts, several long-running investigations were scaled back or deprioritized, including those involving cryptocurrency firms and complex anti-money-laundering (AML) cases

Analysts say the plunge was partly influenced by policy decisions and external factors such as a 43-day government shutdown that disrupted regulatory operations, and staffing cuts at key financial oversight agencies. The combined effect has resulted in fewer investigations translating into large settlements or fines

Despite the U.S. downturn, fines in other jurisdictions increased in 2025, with countries such as France, Switzerland, the United Kingdom, Canada, and the United Arab Emirates reporting higher penalty totals for AML and sanctions violations. Nevertheless, the global total fell about 19% compared with the prior year, underscoring how much the U.S. contributes to worldwide financial crime enforcement.

Critics of the trend warn that a softer enforcement stance could weaken deterrence against illicit finance, particularly when it comes to sanctions evasion, terror financing, and the misuse of digital assets. Supporters, however, argue that the shift allows regulators to focus resources on systemic threats and reduce burdens associated with technical compliance failures.

As the U.S. prepares for potential regulatory and policy reviews in 2026, financial institutions and compliance professionals are closely watching how the enforcement landscape will evolve and whether a recalibration toward stricter penalties could reemerge.