The UK’s financial regulator has reportedly closed its investigation into Monzo’s anti-money laundering measures.
In a disclosure buried within Monzo’s annual report released on Monday (June 3), it was revealed that the Financial Conduct Authority (FCA) notified the company in November that it had ceased evaluating criminal liability regarding Monzo’s compliance with the Money Laundering Regulations 2017.
The report further stated that the FCA is still pursuing an inquiry into potential breaches of certain anti-money laundering (AML) regulations as a civil matter.
Monzo stated, “We are continuing to collaborate with the FCA in their investigation.”
The report elaborated that the FCA’s enforcement division is actively progressing both its ongoing investigation and the assessment of Monzo’s historical compliance with financial crime regulation, anticipating a resolution to take time.
The investigation was initially disclosed in 2021. An FCA representative declined to provide comment when approached by PYMNTS.
Monzo’s annual report also unveiled the bank’s inaugural profitable year.
CEO TS Anil remarked in a press release accompanying the report, “This past year marked a significant period of growth for Monzo. We surpassed 9 million personal customers, 400,000 business customers, introduced groundbreaking new products, completed a £500 million capital raise, and, as anticipated, reported our first year of profitability.”
The capital raise constituted the largest in Europe during 2023, valuing Monzo at $5.2 billion, according to the company.
In the meantime, PYMNTS recently engaged in discussions with a panel of compliance specialists concerning banks’ utilization of artificial intelligence (AI) to combat fraud and money laundering.
The report stated, “After all, fraudsters themselves are leveraging AI to devise new attack strategies with rapidity and efficacy. Banks find themselves engaged in an arms race with nefarious actors.”
Panelists emphasized that AI has become sufficiently accessible for utilization by virtually anyone, whether for beneficial or malicious purposes.
Miguel Navarro, head of Client Identity Verification and Authentication at KeyBank, noted, “You can purchase a synthetic identity for approximately $15 on the dark web. It’s a concerning landscape out there… and we require AI’s assistance to ensure that we conduct our business operations securely.”
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