Vixio Releases H1 2024 European Enforcement Report, Showing Regulators Focused on AML Violations & Banks the Most Hard-Hit

• 67 enforcement actions were tracked in the first six months of 2024
• 54% of enforcement activity was for AML failings
• 84% of enforcement actions were financial penalties, and 49% of fines were issued to banking entities
• Lithuania was the most active jurisdiction, with 12 enforcement actions in H1 2024

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LONDON, 15 October 2024—Vixio, a leading provider of regulatory intelligence solutions, is proud to release its European Enforcement Report for H1 2024. The report analyses enforcement actions in the UK and EU using Vixio’s proprietary Horizon Scanning Tool and Enforcement Tracking function.

Notably, Vixio analysts found that a majority (54%) of enforcement actions have been for anti-money laundering (AML) violations. AML is often a priority for regulators, but the high level of AML enforcement could also be attributed to the EU’s ongoing AML reforms, including the establishment of a new AML authority, which will be based in Frankfurt.

“We are seeing a significant focus on AML compliance from regulators across the EU and UK, and this trend is only set to intensify with the establishment of the new AML authority in Frankfurt,” said Roseanne Spagnuolo, Chief Content Officer, Vixio. “Our report highlights the increasing scrutiny financial institutions face, especially in the banking sector, and underscores the importance of robust compliance measures. With enforcement activity concentrated in areas like AML, data protection and business conduct, it's clear that organisations need to be more vigilant than ever.”

Type of Enforcement Actions

Additionally, the report found that Eastern Europe was the most active region in enforcement in the first half of 2024.

Total No. Of Enforcement Actions Per Jurisdiction

Lithuania was the most active jurisdiction in enforcing violations, with nearly 20% of tracked enforcement actions coming from the country. The Bank of Lithuania and the Financial Crimes Investigation Service (FNTT) are the most active authorities issuing fines, and again, a majority were due to AML violations. The Bank of Lithuania also revoked two licences due to serious AML failings. Lithuania’s tougher approach may be due to its keenness to mature the large payments and e-money industry in the country.

Finally, banks were subjected to the most enforcement actions, accounting for over half of the enforcement cases in H1 2024. In the euro area, banks were hit with penalties totalling €38m, including some high-profile cases such as Deutsche Bank, Commerzbank and HSBC.

Total Enforcement Actions (By Product/Services)

“Given that banks outnumber other payment entities in the EU and UK, this is not necessarily surprising. However, the banking sector is also long established, so organisations should have a clear sense of the regulations they are subject to,” explained John Gidla, Head of PaymentsCompliance at Vixio. “They key takeaway from this report is the importance of payments businesses of any size and type to not only stay ahead of regulatory changes but also proactively assess potential gaps in their current risk management processes. With the right tools, like Vixio Horizon Scanning, payments firms can better anticipate trends and mitigate risks, reducing the likelihood of regulatory enforcement actions.”

Enforcement Tracking is a feature of Vixio’s PaymentsCompliance Horizon Scanning offering. It provides timely updates to clients' inboxes on enforcement actions by EU and UK regulators on companies that violate regulations in areas such as AML, data protection, conduct of business, antitrust, prudential standards, advertising, and others. Enforcement Tracking covers the latest updates on financial penalties, including warnings, licence revocations, remedial actions, and restrictive orders, helping organisations to identify and mitigate risk.

To learn more about Vixio’s award-winning regulatory intelligence solutions, including Enforcement Tracking and Horizon Scanning, visit vixio.com.

About Vixio Regulatory Intelligence

Vixio is a regulatory technology (RegTech) provider for the ever-evolving payments and gambling industries. Vixio equips the world’s leading brands with actionable regulatory intelligence in 180+ jurisdictions globally. Combining award-winning technology with unparalleled expertise, Vixio’s GamblingCompliance and PaymentsCompliance platforms assist organisations in making strategic decisions, discovering new markets, and minimising compliance risk by taking the heavy lift out of regulatory monitoring. For more information, visit  www.vixio.com  or follow Vixio Regulatory Intelligence on LinkedIn.