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2024 Sees Unprecedented Surge in Global Regulatory Fines, Reaching $19.3 Billion
In 2024, global regulatory enforcement reached a record $19.3 billion in fines, driven by increased scrutiny of financial crime and compliance failures. Major penalties included FTX’s historic $12.7 billion for fraud and TD Bank’s $3 billion for anti-money laundering violations. The SEC fined Genesis Global Capital $21 million for registration failures, while the FCA imposed nearly £30 million on Starling Bank for financial crime issues. PwC faced fines for not reporting fraud, and the ASIC penalized Mercer Superannuation £11.3 million for greenwashing. The year highlighted the need for robust compliance programs and internal controls in corporations.
Froda Secures €150M EIF-Backed Guarantee to Boost SME Financing Across Europe
Froda, a FinTech leader in SME financing, has strengthened its partnership with the European Investment Fund (EIF), increasing its lending capacity by €100 million to a total of €150 million. This makes Froda the first to establish a EU-wide microfinance partnership with the EIF, improving credit access for SMEs across all 27 EU member states. With an estimated €400 billion financing gap for SMEs in Europe, Froda aims to support about 10,000 SMEs, leveraging its successful model. The collaboration aligns with EIF’s goals of promoting entrepreneurship and equitable financing, fostering economic growth throughout Europe.
Enhancing AML Frameworks in Gatekeeping Professions: A Risk-Based Approach for Maximum Effectiveness
The Risk-Based Approach (RBA) to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) is essential for gatekeeper professions like lawyers, accountants, real estate agents, and Trust and Company Service Providers (TCSPs). Experts from Arctic Intelligence emphasize that the RBA helps these professionals focus resources on higher-risk clients and transactions. Key steps include conducting risk assessments, implementing tailored mitigation strategies, and ongoing monitoring. Each profession faces unique risks and should adopt specific strategies for mitigation. While there are challenges, such as resource constraints and subjectivity in assessments, ongoing training and technology can enhance compliance and defenses against financial crimes.
CredCore Raises $16M to Revolutionize AI-Powered Debt Investment Solutions
CredCore, a vertical-AI company, has raised $16 million in Series A funding, primarily led by Avataar Ventures, with participation from Inspired Capital, Fitch Group, and BellTower Partners. The investment aims to advance technology in the $5 trillion enterprise credit sector, which has been slow to innovate. CredCore’s platform improves deal processes for major asset managers overseeing over $650 billion in assets by utilizing AI for document analysis and management. Co-founders Saumil Annegiri and Karthik Nandyal highlighted the need for technological solutions while ensuring expert oversight. The funding will support AI expansion and team growth, enhancing their platform for diverse credit markets.
Exploring the Innovation Impact of Regulatory Sandboxes: Unlocking Opportunities for Growth
Regulatory sandboxes are gaining recognition as crucial tools for innovation in the financial sector, allowing businesses to test new products and services while ensuring compliance with regulations. These environments encourage collaboration between financial institutions and RegTech providers, streamline data management, and optimize anti-money laundering (AML) systems. With the success of sandboxes in places like Singapore and the UAE, their adoption is expected to broaden, enhancing compliance with international standards. Key benefits include accelerated AI and machine learning adoption, strengthened collaboration between regulators and firms, and increased investment opportunities, making sandboxes essential for evolving financial compliance and innovation.
