The Global Cost of Non-Compliance in 2024
Fines, Penalties, and Reputational Damage… Oh My!
As 2025 draws near, organizations worldwide are grappling with escalating challenges in employee compliance. Balancing the growing reputational risks and financial consequences of non-compliance with the strategic need to invest in more robust compliance frameworks has become a top priority.
This year has seen the costs of non-compliance surge to record highs, driven by high-profile regulatory charges such as violations of insider trading rules, failures in anti-money laundering protocols, inadequate oversight of cryptocurrency transactions, and breaches in the proper managerial oversight of employee conflicts of interest. These examples underscore the urgent need for forward-thinking strategies and proactive solutions to safeguard both organizational integrity and operational sustainability.
Non-Compliance by the Numbers
Total Fines
Global fines for non-compliance hit a staggering $14 billion in 2024, driven by increasing regulatory scrutiny and enforcement actions across sectors (Thomson Reuters Regulatory Intelligence, 2024).
In North America alone, financial institutions faced an average penalty of $2.5 million per incident (Statista, 2024).
Revenue Impact
Non-compliance eroded client trust, leading to revenue losses of 15-25% as businesses sought more reliable partners (Deloitte, “Global Risk Management Survey,” 2024).
Legal Expenditures
The cost of litigation and regulatory scrutiny averaged $2 million per incident, further straining company resources (Gartner, “Regulatory Compliance Trends,” 2024).
Reputational Damage
Violations had lasting effects on market confidence, with some firms experiencing shareholder value declines of 30% or more post-violation (PwC, “Global Compliance Insights Report,” 2024).
Operational Costs
Compliance remediation consumed up to 25% of annual revenue, redirecting funds from growth and innovation (McKinsey & Company, “The Cost of Compliance,” 2024).
Key Insights from 2024 & The Future of RegTech in 2025
This year, StarCompliance (Star) collaborated with industry leaders to deliver innovative employee compliance solutions, helping organizations navigate complex regulatory landscapes. As highlighted in Star’s Reflections & Projections - 2024 Strategic Insights and the Future of RegTech in 2025, gathering insights and leveraging future-ready technologies are vital to addressing employee compliance challenges.
Staying ahead of regulatory changes requires a forward-thinking approach. Star is at the forefront of this transformation, delivering solutions that empower organizations to proactively manage compliance risks.
Our free executive brief explores:
- Key Discussions from 2024: The role of AI in compliance, emerging cryptocurrency regulations, and the increasing challenges of shadow trading.
- 2024 Regulatory Milestones: Insights into the achievements shaping compliance frameworks.
- 2025 Projections: Actionable strategies to future-proof your compliance program.
Non-compliance is no longer just a regulatory issue—it’s a direct threat to your business’s financial health and reputation. Investing in advanced compliance systems and training is essential to protect your firm, its stakeholders, and its future.
Reflections and Projections: 2024 Strategic Insights and the Future of RegTech in 2025
