Finance

Crime checks at some upstart banks too weak, says UK watchdog

Signage is seen for the FCA (Monetary Conduct Authority), the UK’s monetary regulatory physique, at their head places of work in London, Britain March 10, 2022. REUTERS/Toby Melville

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LONDON, April 22 (Reuters) – Britain’s monetary watchdog mentioned on Friday that some new or ‘challenger’ banks are failing to make correct checks on their prospects to protect in opposition to monetary crime.

Britain has been encouraging extra banks to enter the market to tackle HSBC, Lloyds, Barclays and NatWest, the so-called Huge 4 lenders, which have lengthy dominated retail banking.

Lots of the challengers are on-line solely, serving prospects by way of smartphone apps.

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The Monetary Conduct Authority mentioned that in 2021 it reviewed 6 banks with 8 million prospects and located that some wanted to enhance how they assess monetary crime danger.

Some lenders have been failing to verify their prospects’ revenue and occupation, the FCA mentioned.

“In some cases, challenger banks didn’t have monetary crime danger assessments in place for his or her prospects,” the watchdog mentioned in an announcement.

The banks ought to proceed enhancing their monetary crime techniques, the regulator mentioned, with out naming them.

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Reporting by Huw Jones; Enhancing by Clarence Fernandez

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