UBS fined record $125M for AML violations

On August 3, 2026, the U.S. Treasury's United States — Financial Crimes Enforcement Network (FinCEN) imposed a record $125 million civil penalty on UBS — UBS (UBSFS), the U.S. broker-dealer subsidiary of Swiss bank UBS, for willful violations of the Bank Secrecy Act (BSA). This is the largest fine ever levied against a broker-dealer for BSA violations and marks FinCEN's second enforcement action against UBSFS, following a $14.5 million penalty in 2018 for similar deficiencies. FinCEN found that UBSFS failed to adequately monitor over 50,000 foreign currency wire transfers totaling more than $10 billion between January 2019 and June 2023, and failed to conduct proper customer due diligence on high-risk clients, particularly those with ties to Russia and Americas. The firm also failed to file hundreds of suspicious activity reports on time. UBSFS admitted to willfully violating the BSA and agreed to hire an outside consultant to review its anti-money laundering (AML) program, focusing on risks related to the U.S. Southwest border, cartels, narcotics trafficking, Iran, Russia, and Venezuela. FinCEN will waive up to $15 million of the fine if UBSFS completes the review and implements recommendations. The settlement also resolves parallel actions by the SEC, CFTC, and FINRA. UBS stated it cooperated fully and has invested significantly to strengthen its AML program, calling the matter a 'legacy' issue. The fine comes amid UBS's strong financial performance, including an 80% increase in first-quarter 2026 net profit to $3 billion.