British challenger bank Monzo is being investigated by the Financial Conduct Authority (FCA) for a potential breach of money laundering regulations.

On 7 May 2021 the British financial regulator informed Monzo that they started an investigation into its compliance with financial crime regulation, the lender said in its annual report.

Monzo said: “This investigation is looking into both potential civil and criminal liability. We’re cooperating with the FCA’s investigation, which is at an early stage.

“The FCA are reviewing and investigating our compliance with financial crime regulation. We’re co-operating with them, but we expect it to take time to resolve.

“This could have a material negative impact on our financial position, but we won’t know when or what the outcome will be for some time.”

Concurrently, the bank has reported a pre-tax loss of £130m in the year to February, which is 13% more than the previous year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Founded in 2015, the bank has reported a 23% rise in new customers to five million.

The company has suffered due to the Covid-19 pandemic, which forced it to slash 120 jobs in June 2020.

The layoff accounted for 8% of the company’s total workforce and mainly affected Monzo’s Head Office staff and operations teams.

Around that same time, Monzo closed a $76m funding round with a 40% drop in valuation.

Earlier this year, Monzo extended its Series G funding round by raising an additional investment of £50m ($68m).