What is one possible consequence of failing to comply with AML regulations?

Failing to comply with Anti-Money Laundering (AML) regulations can lead to significant financial penalties and legal repercussions. Regulatory authorities impose these penalties to ensure that institutions diligently monitor and report suspicious activities, thereby maintaining the integrity of the financial system. Institutions found in violation of AML regulations may face hefty fines, which can financially strain the organization and impact its overall reputation in the market. Moreover, legal repercussions may involve investigations, lawsuits, or even the revocation of operating licenses, severely limiting a financial institution's ability to conduct business.

In contrast, the other consequences listed do not occur as a direct result of non-compliance. Transaction speed may be affected by various operational factors, customer satisfaction generally improves with good service rather than compliance failures, and market share could decrease rather than increase if an institution faces penalties and scrutiny due to non-compliance. Thus, the potential for financial penalties and legal repercussions is the clear and most relevant consequence of failing to adhere to AML regulations.