The regulator fined Starling Bank £29m for “appallingly lax” crime controls

The Financial Conduct Authority (FCA) said the bank had “left the financial system wide open to criminals and sanctions”.

The FCA found that Starling had only screened customers against a fraction of the entire list of those subject to financial sanctions.

In addition, the obligation not to open accounts for high-risk customers was repeatedly violated.

According to the regulator’s investigation, around 54,000 accounts were opened for 49,000 high-risk customers between September 2021 and November 2023.

Therese Chambers, joint chief executive of enforcement and markets supervision at the FCA, said: “Starling’s controls on financial sanctions screening were shockingly lax.”

“To make matters worse, the FCA requirements to which it had agreed and which were intended to reduce the risk of Starling facilitating financial crime were not properly adhered to.”

Starling said it accepted breaches occurred between December 2019 and November 2023.

The bank said it had introduced “extensive additional safeguards” to ensure it complies with regulatory requirements.

Chairman David Sproul said: “I would like to apologize for the failings outlined by the FCA and reassure that we have invested heavily to remedy the situation, including strengthening our board leadership and capabilities.”

“We want to reassure our customers and employees that these are historic issues.

“We have learned the lessons from this investigation and are confident that these changes and the strength of our business put us in a strong position to continue to deliver on our strategy of safe, sustainable growth, supported by a robust risk management and control framework.”