FCA Fines Starling Bank £29M for Financial Crime Failings
Hey FinTech Fanatic!
Starling Bank has been hit with a £28.9 million fine by the Financial Conduct Authority (FCA) for serious failings in its financial crime systems. Despite its explosive growth—surging from 43,000 customers in 2017 to 3.6 million in 2023—Starling’s controls on financial crime didn’t keep pace.
The bank repeatedly breached FCA requirements, including one that barred it from opening accounts for high-risk customers. Between 2021 and 2023, it opened over 54,000 such accounts, directly flouting an agreed restriction.
In January 2023, Starling discovered that its screening system had been insufficient since 2017, failing to check customers against full financial sanctions lists. An internal review exposed further flaws, leading to multiple reported breaches.
Therese Chambers, FCA Joint Executive Director of Enforcement, called Starling’s screening system “shockingly lax,” saying it left the financial system vulnerable to criminals and sanctions evaders.
Although the bank is now working to fix these issues, the FCA’s swift 14-month investigation—compared to an average of 42 months—signals a new era of faster regulatory enforcement.
The question is, how can banks strike the right balance between rapid growth and strong financial crime controls? Tell me your thoughts in the comments.
Now, onto the latest updates.
Cheers,
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