Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Starling Bank fined £29m for ‘shockingly lax’ financial crime controls

by October 4, 2024
October 4, 2024

Starling Bank has been fined £29 million by the Financial Conduct Authority (FCA) for “shockingly lax” financial crime controls that left the UK’s financial system exposed to criminals and sanctioned individuals.

The FCA’s investigation revealed that the digital bank failed to design and implement adequate systems to mitigate financial crime risks, particularly as it rapidly grew from its first account in 2016 to 3.6 million customers by 2023.

The FCA raised serious concerns about Starling’s anti-money laundering (AML) and financial sanctions controls as early as 2021 during a review of fast-growing challenger banks. In response, Starling agreed to halt opening new accounts for high-risk customers until its systems were improved. However, the bank breached this agreement, opening more than 54,000 accounts for nearly 50,000 high-risk customers, a direct violation of FCA requirements.

A further failure in Starling’s automated screening system between 2017 and 2023 meant that only a fraction of customers subject to financial sanctions were properly screened. This oversight exposed the bank to a “material risk” that individuals under sanctions may have opened or continued to hold accounts with Starling.

The regulator’s findings raise serious questions about Starling’s leadership under its founder, Anne Boden, who stepped down as CEO in June 2023 and left the board the following year. The bank had hired a consultancy firm to investigate its compliance issues, which reported in September 2023 that Starling’s senior management lacked the necessary experience to enforce compliance with the FCA’s agreement.

Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, criticised the bank’s failings, stating: “Starling’s financial sanction screening controls were shockingly lax. It left the financial system wide open to criminals and those subject to sanctions.”

Starling has since apologised for its failings, with chairman David Sproul stating that the bank has “invested heavily to put things right, including strengthening our board governance and capabilities.” Despite these efforts, the fine raises concerns about Starling’s planned pursuit of a London stock market listing.

The scandal has also led to rival banks considering legal action against Starling for fraud reimbursement costs related to fraudulent payments made to Starling customers. In June, The Times reported that the FCA had opened a separate investigation into Starling’s compliance with the UK’s anti-money laundering rules.

Starling has expressed regret for the failures that occurred between 2019 and 2023, but the fine represents a significant blow to the reputation of the once highly regarded digital bank, casting doubt on its future leadership and regulatory compliance.

Read more:
Starling Bank fined £29m for ‘shockingly lax’ financial crime controls

0
FacebookTwitterGoogle +Pinterest
previous post
Motor Industry calls for VAT cut on electric cars and charging points to boost EV market
next post
Labour’s economic pessimism halts UK equity market recovery, triggering significant outflows

You may also like

Government support unlocks £300k for AceOn’s energy transition...

May 31, 2023

Royal Mail resumes overseas deliveries via post offices...

February 21, 2023

New research shows UK exporters are optimistic about...

April 27, 2023

Labour says middle classes back 20% vat on...

December 29, 2024

UK economy to remain worst-performing of top nations...

April 11, 2023

Future-oriented technology – artificial intelligence in translation software

August 17, 2022

John Lewis puts Winter Hill golf club in...

March 2, 2023

Supply chains remain a major problem for Mini

August 4, 2022

Behind the wheel: How car insurance works for...

August 7, 2023

AI Virtual Assistants in Omnichannel Support: Bridging CRM...

October 25, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump confirms 2 nuclear submarines are ‘in the region’ to counter Russia

      August 4, 2025
    • Trump Accounts Won’t Replace Social Security or Help Americans Build Significant Wealth

      August 4, 2025
    • How Special Interests Keep Bad Laws on the Books: The Case of the Jones Act

      August 4, 2025
    • Four Cymru partners with Wales Tech Week to showcase Welsh innovation on the global stage

      August 4, 2025
    • Rachel Reeves urged to apply VAT to private healthcare in bid to fund NHS

      August 4, 2025
    • Trump accuses Senate Democrats of using nominee confirmations as leverage for funding deals

      August 4, 2025

    Categories

    • Business (8,658)
    • Investing (2,170)
    • Politics (16,294)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved