The state of financial crime prevention among digital banks has been once again called into question this week after Monzo, one of the UK’s most popular examplars, was handed a £21m fine by the Financial Conduct Authority (FCA) for historical failings in their security.
The FCA said on Monday that the bank, which serves more than 13 million customers, failed to implement adequate screening, risk assessment and transaction monitoring systems between 2018 and 2020.
The regulator also noted that the bank, during a period in which it was under investigation by the regulator, failed to comply with an order to not onboard “high-risk” customers.
The high profile regulatory action is the latest in a string of similar cases carried out by the FCA over digital-focused banking firms, with Starling and Metro Bank both having faced fines over flaws in their financial crime prevention systems….
