- The Financial Conduct Authority (FCA) has imposed a £16.7 million fine on Metro Bank due to failures in its financial crime monitoring systems from 2016 to 2020.
- Metro’s transaction monitoring system, implemented in June 2016, failed to work as intended, leaving over £51 billion across 60 million transactions inadequately monitored for money laundering risks.
- Although concerns were raised by junior staff in 2017 and 2018, the issue persisted until a fix was applied in 2019, with further improvements completed in December 2020.
- Therese Chambers from the FCA expressed concerns over the prolonged control gaps, which may have enabled financial crimes.
- Metro Bank’s cooperation with the investigation led to a 30% reduction in the initial fine, originally set at £23.8 million.
- CEO Daniel Frumkin acknowledged the bank’s past deficiencies, adding that Metro has now enhanced its systems and remains committed to future growth and strong regulatory compliance.
FCA Fines Metro Bank £16.7M Over Inadequate Financial Crime Controls
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