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UK Online Bank Monzo Fined £21 Million by FCA for Anti-Money Laundering Failures
Dublin, Ireland – July 9, 2025 – Monzo, the popular UK-based digital bank, has been issued a significant fine of £21 million by the Financial Conduct Authority (FCA) for breaches related to anti-money laundering (AML) regulations. The penalty, announced today, stems from failures in Monzo’s customer due diligence processes, which the FCA found to be inadequate in preventing financial crime.
The FCA’s investigation focused on Monzo’s oversight of customer accounts, particularly concerning individuals who provided false or misleading information about their residential addresses. These lapses meant that the bank was unable to adequately verify the identity and location of some of its customers, a critical component of robust AML procedures. The FCA highlighted that these failures exposed Monzo to potential risks of being used for illicit financial activities.
A spokesperson for Monzo acknowledged the FCA’s findings and expressed the bank’s commitment to rectifying the identified shortcomings. “We sincerely regret these failings and are working diligently to enhance our AML controls,” the spokesperson stated. “We have taken immediate steps to strengthen our systems and processes to ensure we meet and exceed regulatory expectations. We are fully cooperating with the FCA throughout this process and are committed to protecting our customers and the wider financial system.”
The FCA’s enforcement action underscores the stringent requirements placed upon all financial institutions to prevent money laundering and terrorist financing. In its statement, the regulator emphasized that while Monzo has since taken remedial action, the initial failures were serious and persisted for a period. The fine reflects the gravity of these deficiencies and serves as a reminder of the importance of ongoing vigilance in the fight against financial crime.
This development represents a significant regulatory challenge for Monzo, which has grown rapidly in recent years by offering a user-friendly and accessible banking experience. While the fine is substantial, the bank has indicated that it will not impact its day-to-day operations or its commitment to serving its customer base. The focus for Monzo now will be on demonstrating sustained improvement in its compliance frameworks and rebuilding full confidence with the regulatory body. The FCA will continue to monitor the bank’s progress in implementing the necessary changes.
UK bank Monzo fined £21m for giving accounts to fake addresses
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