Post by anenro on Aug 2, 2021 21:42:43 GMT 4
Monzo under investigation by FCA over anti-money laundering rules
The UK’s financial watchdog has said it is investigating digital bank Monzo over potential breaches of anti-money laundering and financial crime rules.
Monzo, which was founded in 2015 and is known for its hot coral bank cards, said it was cooperating with the investigation, which was in its early stages but could lead to civil and criminal charges.
The Financial Conduct Authority (FCA) notified Monzo about its inquiry in May this year, saying it was looking into potential breaches of UK rules related to anti-money laundering and financial crime controls between October 2018 and April 2021.
Last year, hundreds of Monzo customers complained that their accounts has been closed or frozen without explanation.
“The prevention of financial crime is an issue that affects the entire banking industry and one which Monzo is taking extremely seriously,” the bank said in a statement. “Over the past year we have made major investments in our controls in this area as a priority and will continue to invest heavily in this part of the business. The FCA’s investigation remains at an early stage. Our operations are unaffected and we remain committed to serving our customers.”
A spokesman for the FCA, which has been increasing its efforts to combat money-laundering across the financial sector in recent months, said the watchdog was not able to comment on the detail of open investigations.
The UK’s financial watchdog has said it is investigating digital bank Monzo over potential breaches of anti-money laundering and financial crime rules.
Monzo, which was founded in 2015 and is known for its hot coral bank cards, said it was cooperating with the investigation, which was in its early stages but could lead to civil and criminal charges.
The Financial Conduct Authority (FCA) notified Monzo about its inquiry in May this year, saying it was looking into potential breaches of UK rules related to anti-money laundering and financial crime controls between October 2018 and April 2021.
Last year, hundreds of Monzo customers complained that their accounts has been closed or frozen without explanation.
“The prevention of financial crime is an issue that affects the entire banking industry and one which Monzo is taking extremely seriously,” the bank said in a statement. “Over the past year we have made major investments in our controls in this area as a priority and will continue to invest heavily in this part of the business. The FCA’s investigation remains at an early stage. Our operations are unaffected and we remain committed to serving our customers.”
A spokesman for the FCA, which has been increasing its efforts to combat money-laundering across the financial sector in recent months, said the watchdog was not able to comment on the detail of open investigations.
