Wolters Kluwer analysis finds federal regulatory enforcement remains at historic lows as states and private litigants attempt to fill accountability void

Slight decline in overall violations underscores continued selective federal action and a patchwork state response shaped by differing priorities

NEW YORK--(BUSINESS WIRE)--Wolters Kluwer Financial & Corporate Compliance today highlighted that federal regulatory penalties fell 83% in the second half of 2025 (H2 2025), dropping from $3.93 billion in the first half of 2025 (H1 2025) to $654 million, according to Wolters Kluwer Compliance Solutions’ Regulatory Violations Intelligence Index. The findings underscore a continued period of historically low federal enforcement marked by fewer actions and sharply reduced monetary consequences.

While total violations remained relatively flat at 132 in the second half of 2025, enforcement activity had already declined significantly earlier in the year. The combination of limited federal supervision and lower penalties is reshaping the compliance landscape, increasing reliance on state regulators and private litigation.

“Fewer federal actions paired with dramatically lower penalties weaken traditional deterrence signals,” said Chuck Ross, VP, Investment Compliance Solutions & Compliance Program Management, Wolters Kluwer Compliance Solutions. “Organizations now face greater exposure across a fragmented mix of state enforcement regimes and private lawsuits.”

Key findings

Consumer protection violations

• 69 violations, down from 95 in H1 2025
• 61% decline in penalties
• Only one federal action; the remainder driven by states or private litigation

Financial violations

• 51 violations, up from 35 in H2 2024
• 89% decline in penalties
• Federal actions fell from 45 in H2 2024 to just five in H2 2025

Competition-related offenses

• Enforcement doubled from a low base
• Penalties declined 66%

State regulators and private litigants fill the gap

As federal rulemaking and enforcement continue to recede, state authorities and private plaintiffs played an increasingly prominent role in shaping compliance risk.

“The balance has fundamentally shifted,” Ross said. “Firms operating across multiple states are now navigating dozens of enforcement regimes instead of a single federal standard—making compliance more complex and less predictable.”

Ross added that the shift appears structural rather than temporary, particularly as states step up enforcement efforts in response to the federal pullback.

Powered by Wolters Kluwer’s proprietary enforcement database, third‑party data sources including GoodJobsFirst.org, and AI‑driven semantic analytics, the Regulatory Violations Intelligence Index helps compliance professionals anticipate regulatory shifts, benchmark risk exposure, and allocate resources more effectively. Third‑party data is augmented through proprietary analysis capturing enforcement actions from key supervisory bodies such as the CFTC, CFPB, FDIC, Federal Reserve, OFAC, OCC, and SEC. While extensive, the Index does not claim comprehensive coverage of all enforcement activity.

About Wolters Kluwer

Wolters Kluwer (EURONEXT: WKL) is a global leader in information solutions, software and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.

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