FCA Fines Starling Bank 29 Million Pounds for Financial Crime Failings

The UK's Financial Conduct Authority has fined Starling Bank 29 million pounds for financial crime failings, in one of the largest penalties imposed on a digital bank. The fine relates to weaknesses in Starling's anti-money laundering and sanctions screening systems.

The FCA found that Starling's rapid growth had outpaced its ability to maintain adequate financial crime controls, with the bank failing to properly screen new customers and transactions against sanctions lists and financial crime databases.

The fine sends a strong message to the UK's digital banking sector about the importance of maintaining robust compliance systems as companies scale, and highlights the regulatory risks of prioritising growth over compliance investment.