London-based FinTech company Monzo is facing a Financial Conduct Authority (FCA) investigation following allegations the company may have flouted anti-money laundering (AML) laws.
The investigation is just getting started, but according to a Monzo spokesperson, it could include investigations of both civil and criminal liability. News of the investigation was revealed by the Financial Times at the end of last week.
Taking financial crime very seriously
In a statement, Monzo said that it took the matter of financial crime extremely seriously, as it affected the whole of the banking and financial industry.
The company stated, “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 has also recently released its most recent annual report. In it, the CEO of the company, TS Anil, said that despite the past year's challenges with Covid, the digital bank had experienced significant growth.
Monzo's annual report also mentioned the FCA investigation. However, it focused more on the fact that its success was down to successfully weathering the problems and challenges posed by Covid to minimise losses.
Mr Anil also went on to say that the challenger bank was focused on continued growth and profit over the coming year and that it plans to take steps to raise additional funds. This funding will then be used to help promote further growth and get past regulations concerning capital.
He added that Monzo had managed to land more than £200 million over the past year and received interest from existing and new investors.