The consequences of regulatory compliance breaches can be severe. They range from losing professional accreditation to multi-million-pound fines or lengthy prison sentences.
Even companies with well-trained staff and thorough compliance processes may get caught off guard. And sometimes breaches aren't accidental.
We track penalties across key areas of compliance, from AML, bribery and competition law to GDPR.
We hope others can avoid the same mistakes by understanding what went wrong.
Complying with regulations is a requirement for all companies. Unsurprisingly, this is the only way to completely avoid compliance fines. But there are some simple steps you can follow to reduce the risk of compliance fines.
However, judging by the number of fines issued annually, these steps are easier said than done. As you will soon see, the consequences of breaching regulations in any area of compliance can be dire.
Our overview covers the key areas of compliance and investigates the penalties associated with specific regulatory breaches. We guide you on how to avoid being on the receiving end of one of these fines. And we provide some free resources to help with your regulatory compliance journey
It is a requirement for companies in the UK that operate in sectors covered by Money Laundering Regulations to register with a supervisory authority. This could be the FCA (for regulated financial services firms), HMRC or their professional body. These authorities provide regulations and guidance on how to prevent money laundering.
Any company found in breach of money laundering regulations will face penalties that can range from fines to prison sentences in more severe cases. The supervisory authority will determine the magnitude of the penalty. Some considerations made by HMRC, for example, include:
Are you wondering what a Money Laundering Reporting Officer (MLRO) does and what their key responsibilities should be? Our checklist identifies the 20 key areas of responsibility that should fall under the MLRO's remit.
Our free training presentation provides an ideal platform to help your employees understand what 4MLD means and the responsibilities they have as employees to ensure your business is up-to-date on this Directive.
Our free training presentation provides an ideal platform to help your employees understand what 5MLD means and the responsibilities they have as employees to ensure your business is up-to-date on this Directive
Our free training presentation provides an ideal platform to help your employees understand what 6MLD means and the responsibilities they have as employees to ensure your business is up-to-date on this Directive.
The Bribery Act creates a "strict liability" offence for companies in the UK that fail to prevent bribery by their staff, agents, subsidiaries and other 'associated persons'.
If an associated person offers or pays a bribe on a company's behalf, that company can face unlimited fines even if they didn't sanction the bribe or know about the bribe payment. The only defence available to a company in this position is having "adequate procedures" to prevent bribery.
Due to the nature of bribery's financial gains, disgorgement is often the most significant penalty firms face. This dwarfs the actual fine by an enormous amount.
Apart from the financial damage incurred, companies could also suffer:
Individuals who are found guilty of a bribery offence face penalties in the form of:
Discover the gold standard in digital anti-bribery training. Our free online training module is produced in partnership with Transparency International UK and provides comprehensive anti-corruption training for front-line staff.
Teach your team about UK anti-bribery laws and red flags with our free, interactive training presentation. This is a time-efficient way of educating your staff on behaviour that could be considered corrupt.
Are you wondering where bribery starts and goodwill ends? Our free checklist will help your employees stay compliant when giving or receiving gifts or hospitality.
Our best practice guide is simple yet comprehensive and helps to ensure that your bribery training is compliant. Discover how RegTech tools and e-learning can assist you in implementing the best practices and avoiding common pitfalls.
Having a healthy level of competition in business keeps things interesting, and it is often favourable to consumers. However, there are limitations on what businesses can and can't do. Competition law ensures that businesses are competing on a level playing field.
The UK and EU competition law prohibit two main types of ant-competitive activity: abuse of dominant position and anti-competitive agreements. Some of the most common unlawful actions that fall under these areas include:
The consequences for breaking competition law can be severe. Businesses can face hefty penalties, and individuals could be banned from management or have to do jail time.
Competition law is a complex area covering many different types of anti-competitive behaviour. So here are just a few basic tips to stay compliant.
The Financial Conduct Authority (FCA) aims to protect consumers, promote fair competition and enhance market integrity. However, getting on the wrong side of the FCA can cost a UK company dearly.
Financial penalties for market abuse and breaching FCA regulations and competition law can amount to millions. Apart from issuing fines, the FCA's enforcement powers include:
We've summarised the largest FCA fines of all time and the latest fines in 2024.
The FCA's 'Principles for Business' (PRIN) outline the fundamental obligations firms need to adhere to under the regulatory regime.
According to the FCA principle 3, a firm "must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems". This statement refers to a firm's:
Since the General Data Protection Regulation (GDPR) came into effect in 2018, it has completely transformed how companies deal with their clients' personal data. It has introduced reforms that are tailor-made for today's world and promised severe consequences for any companies that fail to respect them.
Brexit has brought about change since UK data protection law has largely been governed by European Union law. However, from the 1st January 2021, the UK ceased to be a part of the EU, meaning that the EU GDPR no longer protects UK citizens.
The general data protection regime that now applies to most UK businesses and organisations is the UK General Data Protection Regulation (UK GDPR), tailored by the Data Protection Act 2018.
Companies must report certain personal data breaches to the relevant supervisory authority within 72 hours of becoming aware of the breach. The maximum GDPR breach fine a company can face is 4% of their annual global turnover, or €20 million - whichever is the highest. For less serious violations, such as having improper records, there is a maximum of 2% of their annual global turnover, or €10 million.
We've summarised the largest GDPR fines of all time and the most recent GDPR fines in 2024.
At the core of the GDPR are seven key principles, which are laid out in Article 5 of the legislation and designed to guide how to handle people's data:
At least one of these must apply whenever you process personal data:
Any breach in health and safety regulations is a criminal offence. The Health and Safety Executive (HSE) and local authorities are responsible for enforcing health and safety legislation in the UK. The HSE can issue notices of improvementor prohibition and financial penalties.
In the most severe cases where an employee's life is endangered or lost, authorities can impose prison sentences and unlimited fines. Injured employees can also claim against a business if the business fails to implement best practices.
We've summarised the largest HSE fines of all time and the most recent Health and Safety fines in 2024.
In general, most health and safety-related fines handed out are due to the breach of section 2 of the Health and Safety at Work Act 1974. This act stipulates that an employer has to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all their employees. This duty involves:
As well as tracking the largest recent fines, we have also examined the largest penalties in history. We reflect on the biggest compliance fines in these key areas, from UK competition law fines to data breach fines and financial crime penalties.
Finally, we explain what drives fines in specific areas and how to avoid them across financial sanctions, the GDPR and tax evasion.