Partner Richard Cannon comments on the news that Monzo has been fined £21 million by the FCA over ‘inadequate’ anti-financial crime systems and for breaching a requirement preventing it from opening accounts for high-risk customers.
Richard’s comments were published in ICLG, 9 July 2025.
“This fine is a stark reminder that growth is no excuse for weak financial crime controls. With Metro Bank and Starling also recrntly facing scrutiny over regulatory concerns, it’s clear that the FCA is sharpening its teeth when it comes to challenger banks.
“Monzo’s failure to spot suspicious onboarding, including customers using London landmarks as addresses, is more than just a slip-up; it’s emblematic of broader institutional issues. Fintechs chasing rapid expansion without matching investment in AML systems risk becoming conduits for financial crime. The FCA is showing it will not hesitate to act in such cases.”