Monzo has been fined £21 million by the Financial Conduct Authority for inadequate financial crime controls, which enabled fraudsters to open bank accounts with fake or implausible addresses from 2018 to 2022. The FCA pointed out that Monzo's systems failed to adapt to rapid growth in customers, leading to numerous breaches. Notably, the bank opened 34,000 accounts for high-risk customers despite a ban from the regulator. Failings included use of clearly false addresses and inadequate vetting processes for suspicious transactions.
Monzo has been fined £21 million by the Financial Conduct Authority (FCA) after fraudsters were able to open bank accounts using clearly fake or implausible addresses - including Buckingham Palace and 10 Downing Street.
The FCA said Monzo's financial crime controls were 'completely inadequate', allowing thousands of suspicious accounts to be opened between 2018 and 2022.
In one major breach, Monzo opened 34,000 accounts for high-risk customers for almost two years after it had been banned from doing so by the regulator.
Among the catalogue of failings identified by the FCA were the use of PO Boxes, mail-forwarding services, and addresses linked to previously banned customers.
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