London FinTech Monzo is facing an investigation from the Financial Conduct Authority (FCA) over allegations of possibly violating anti-money laundering (AML) laws, Financial Times reported on Friday (July 30).
Monzo CEO TS Anil said in its most recent annual report that despite a year that posed numerous obstacles, the digital bank showed fortitude and posted a “significant amount of growth,” FT reported.
The challenger bank also used its annual report to discuss the startup’s current FCA probe regarding alleged AML violations. But the report also turned the spotlight on Monzo’s ability to keep losses at bay despite early hits from the worldwide COVID-19 pandemic.
Anil said Monzo has its sights set on turning a profit next year and would raise additional funds in the coming months that will power growth and help it keep a few steps ahead of regulations regarding capital.
Monzo landed over £200 million (approximately $278 million) during its last year, while the FinTech is “fielding a significant amount of inbound interest” from new and present investors, Anil said, according to the FT report.
Although the FCA’s investigations are just getting out of the gate, the probe potentially includes both criminal and civil liability, Monzo said, per FT.
“The prevention of financial crime is an issue that affects the entire banking industry and one which Monzo is taking extremely seriously. Over the past year we have made major investments in our controls in this area as a priority and will continue to invest heavily in this part of the business,” Monzo said, per FT.
Monzo is not the only challenger bank facing scrutiny over money laundering allegations. In Germany neobank N26 was ordered by the Federal Financial Supervisory Authority (BaFin) to step up its AML efforts. BaFin mandated that N26 Bank change how it approaches IT monitoring and customer due diligence.
London FinTech Monzo is going through an investigation from the Monetary Conduct Authority (FCA) over allegations of presumably violating anti-money laundering (AML) legal guidelines, Monetary Occasions reported on Friday (July 30).
Monzo CEO TS Anil stated in its most up-to-date annual report that regardless of a yr that posed quite a few obstacles, the digital financial institution confirmed fortitude and posted a “important quantity of progress,” FT reported.
The challenger financial institution additionally used its annual report to debate the startup’s present FCA probe relating to alleged AML violations. However the report additionally turned the highlight on Monzo’s capacity to maintain losses at bay regardless of early hits from the worldwide COVID-19 pandemic.
Anil stated Monzo has its sights set on turning a revenue subsequent yr and would elevate extra funds within the coming months that can energy progress and assist it hold just a few steps forward of laws relating to capital.
Monzo landed over £200 million (roughly $278 million) throughout its final yr, whereas the FinTech is “fielding a major quantity of inbound curiosity” from new and current traders, Anil stated, in line with the FT report.
Though the FCA’s investigations are simply getting out of the gate, the probe probably consists of each felony and civil legal responsibility, Monzo stated, per FT.
“The prevention of monetary crime is a matter that impacts your complete banking trade and one which Monzo is taking extraordinarily severely. Over the previous yr we now have made main investments in our controls on this space as a precedence and can proceed to speculate closely on this a part of the enterprise,” Monzo stated, per FT.
Monzo shouldn’t be the one challenger financial institution going through scrutiny over cash laundering allegations. In Germany neobank N26 was ordered by the Federal Monetary Supervisory Authority (BaFin) to step up its AML efforts. BaFin mandated that N26 Financial institution change the way it approaches IT monitoring and buyer due diligence.