FCA fine Starling Bank Limited £28,959,426 for financial crime fails
02/10/2024
The Financial Conduct Authority (FCA) recently fined Starling Bank Limited £28,959,426 for significant failings in their financial crime systems and controls
KEY FACTS
- The fine was imposed due to issues related to financial sanctions screening and the bank's repeated breaches of a requirement not to open accounts for high-risk customers.
- The FCA highlighted that Starling's rapid growth—from around 43,000 customers in 2017 to 3.6 million in 2023—was not matched by adequate measures to tackle financial crime.
- The regulator described the bank's financial crime controls as "shockingly lax," leaving the financial system vulnerable to criminals and those subject to sanctions.
- Starling Bank has accepted the FCA's findings and expressed regret and apologies for the shortcomings that led to this situation.
FCA
- For the reasons given in this Final Notice, the Authority hereby imposes on Starling Bank Limited (“Starling”) a financial penalty of £28,959,426 pursuant to section 206 of the Act.
- Starling agreed to resolve this matter and qualified for a 30% (stage 1) discount under the Authority’s executive settlement procedures. Were it not for this discount, the Authority would have imposed a financial penalty of £40,959,426 on Starling?
Source
- https://www.fca.org.uk/publication/final-notices/starling-bank-limited-2024.pdf
FCA fines Starling Bank £29m for failings in their financial crime .... https://www.fca.org.uk/news/press-releases/fca-fines-starling-bank-failings-financial-crime-systems-and-controls. - FCA Fines Starling Bank £29m for Failings in Their Financial Crime .... https://ffnews.com/newsarticle/fintech/fca-fines-starling-bank-29m-for-failings-in-their-financial-crime-systems-and-controls/.
- Starling Bank fined £29m by watchdog over ‘shockingly lax’ crime .... https://www.thenational.scot/news/national/24624191.starling-bank-fined-29m-watchdog-shockingly-lax-crime-controls/.
- Starling Bank response to FCA Final Notice. https://www.starlingbank.com/news/starling-bank-response-to-fca-final-notice/.
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