The fine came as Monzo added those “high-risk” customers between August 2020 and June 2022.
The digital bank, however, agreed to resolve the lapses in its financial crime controls.
The Financial Conduct Authority (FCA) in the United Kingdom has imposed an almost £21.1 million fine on digital banking giant Monzo for opening accounts for “high-risk” customers, thus “repeatedly” breaching requirements around financial crime controls.
Crime Control Lapses Cost Monzo Heavily
The regulator announced today (Tuesday) that its review found the digital bank had inadequate anti–financial crime systems and controls between October 2018 and August 2020.
Furthermore, it “repeatedly failed to comply with the terms” around onboarding high-risk customers between August 2020 and June 2022, and signed up more than 34,000 of such clients.
Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight
“Monzo onboarded customers on the basis of limited, and in some cases, obviously implausible information—such as customers using well-known London landmarks as an address,” said Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight.
“This illustrates how lacking Monzo's financial crime controls were,” she added. “This was compounded by its inability to properly comply with the requirement not to onboard high-risk customers.”
Interestingly, Monzo’s customer base jumped tenfold from around 600,000 in 2018 to over 5.8 million in 2022.
The company reported its first annual profit in 2023 and continued to grow in 2024–25, with revenue reaching over £1.2 billion. About one-third of its customers now use it as their main bank.
TS Anil, Monzo’s Group CEO
The British regulator further highlighted that Monzo has now established and completed a financial crime change programme to fix and improve its broader financial crime control framework, in line with recommendations made in the independent review.
The FCA originally decided to impose a fine of over £30.1 million on Monzo but reduced the amount by 30 per cent as the challenger bank agreed to resolve the matter.
“The FCA’s findings relate to a historical period that ended three years ago,” said TS Anil, Monzo’s Group CEO, adding: “[They] draw a line under issues that have been resolved and are firmly in the past—with our learnings at the time leading to substantial improvements in our controls.”
However, Monzo is not the only British challenger bank to be caught onboarding high-risk customers. Last year, the FCA imposed a £29 million fine on Sterling Bank for opening more than 54,000 accounts for 49,000 “high-risk customers” between September 2021 and November 2022, calling its financial crime controls “shockingly lax.”
The Financial Conduct Authority (FCA) in the United Kingdom has imposed an almost £21.1 million fine on digital banking giant Monzo for opening accounts for “high-risk” customers, thus “repeatedly” breaching requirements around financial crime controls.
Crime Control Lapses Cost Monzo Heavily
The regulator announced today (Tuesday) that its review found the digital bank had inadequate anti–financial crime systems and controls between October 2018 and August 2020.
Furthermore, it “repeatedly failed to comply with the terms” around onboarding high-risk customers between August 2020 and June 2022, and signed up more than 34,000 of such clients.
Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight
“Monzo onboarded customers on the basis of limited, and in some cases, obviously implausible information—such as customers using well-known London landmarks as an address,” said Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight.
“This illustrates how lacking Monzo's financial crime controls were,” she added. “This was compounded by its inability to properly comply with the requirement not to onboard high-risk customers.”
Interestingly, Monzo’s customer base jumped tenfold from around 600,000 in 2018 to over 5.8 million in 2022.
The company reported its first annual profit in 2023 and continued to grow in 2024–25, with revenue reaching over £1.2 billion. About one-third of its customers now use it as their main bank.
TS Anil, Monzo’s Group CEO
The British regulator further highlighted that Monzo has now established and completed a financial crime change programme to fix and improve its broader financial crime control framework, in line with recommendations made in the independent review.
The FCA originally decided to impose a fine of over £30.1 million on Monzo but reduced the amount by 30 per cent as the challenger bank agreed to resolve the matter.
“The FCA’s findings relate to a historical period that ended three years ago,” said TS Anil, Monzo’s Group CEO, adding: “[They] draw a line under issues that have been resolved and are firmly in the past—with our learnings at the time leading to substantial improvements in our controls.”
However, Monzo is not the only British challenger bank to be caught onboarding high-risk customers. Last year, the FCA imposed a £29 million fine on Sterling Bank for opening more than 54,000 accounts for 49,000 “high-risk customers” between September 2021 and November 2022, calling its financial crime controls “shockingly lax.”
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
