Criminal Risks – Penalties for money laundering violations:
A person convicted of money laundering can face up to 20 years in prison and a fine of up to $500,000.
Any property involved in a transaction that is traceable to the proceeds of the criminal activity, including property such as loan collateral, personal property, and, under certain conditions, entire bank accounts (even if some of the money in the account is legitimate), may be subject to forfeiture.
Banks risk losing their charters, and bank employees risk being removed and barred from banking.
Operational Risks – Companies that stumble in AML compliance pay a steep price for failures:
Stock price declines
Record financial penalties
High legal and public relations costs
Personal damage to the careers of the executives involved