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Metro Bank has been fined almost £17 million by the UK’s financial watchdog for failing to ensure an automated system properly checked customer transactions for possible money laundering for four years after its installation.
The Financial Conduct Authority said junior staff have raised concerns in the two years since Metro Bank’s new financial crime system was launched in 2016. But even after a fix was applied in 2019, the vulnerabilities persisted until a year later.
“Metro’s failings risked leaving a gap in our defenses against the criminal abuse of our financial system,” said Therese Chambers, joint executive director of enforcement and market supervision at the FCA. “These shortcomings have gone on for too long.”
Metro Bank had its £16.7m fine reduced by 30 per cent for agreeing to enforcement action early.
Daniel Frumkin, CEO of Metro Bank, said: “The conclusion of this investigation draws a line under this historic issue, allowing the bank to move forward and fully focus on the future.”