Starling Bank has been fined by The Financial Conduct Authority (FCA) for financial crime failings related to its financial sanctions screening. The regulator said it also repeatedly breached a requirement not to open accounts for high-risk customers.
The FCA said Starling grew quickly, from approximately 43,000 customers in 2017 to 3.6 million in 2023.
However, it said measures to tackle financial crime did not keep pace with its growth.
When the FCA reviewed financial crime controls at challenger banks in 2021, it noted it identified serious concerns with the anti-money laundering and sanctions framework in place at Starling.
Until this improved, the bank agreed to a requirement restricting it from opening new accounts for high-risk customers. Starling failed to comply and opened more than 54,000 accounts for 49,000 high-risk customers between September 2021 and November 2023.
In January 2023, the FCA said Starling became aware that its automated screening system had, since 2017, only been screening customers against a fraction of the full list of those subject to financial sanctions.
It said a subsequent internal review identified systemic issues in its financial sanctions framework. Starling added it has since reported multiple potential breaches of financial sanctions to the relevant authorities.
More here -
