The Financial Conduct Authority (FCA) fined Starling Bank £29 million for insufficient checks on financial sanctions, including ignoring risk factors such as cryptocurrency platforms.
According to the FCA, between September 2021 and November 2023, the bank opened 54,000 accounts for 49,000 high-risk clients, failing to consider important factors. "Starling's sanctions controls were extremely weak, which posed a threat to the financial system," said Theresa Chambers, FCA Executive Director.
In early 2023, Starling discovered that its screening system had been checking clients against a limited sanctions list since 2017. The bank reported possible violations to the authorities after an internal audit.