Monzo fined for accepting fake addresses including 10 Downing St

Digital bank Monzo accepted customers claiming to live at 10 Downing Street, Buckingham Palace, and even its own premises, an investigation has found. Monzo failed to spot the 'implausible' use of London landmarks on applications to open accounts due to a lack of address verification. The Financial Conduct Authority (FCA) fined Monzo £21m for its failures regarding anti-financial crime measures. Monzo stated that significant improvements had been made to its systems since the regulator's findings related to problems dating back more than three years.

The FCA's investigation revealed that Monzo accepted customers using PO boxes, foreign addresses with UK postcodes, or 'obviously implausible UK addresses, such as well-known London landmarks' like 10 Downing Street, Buckingham Palace, and its own business premises. This lack of verification led to the onboarding of risky customers based outside the UK, highlighting the inadequacy of Monzo's financial crime controls, according to the regulator.

Despite its rapid growth, with the number of customers surging from around 600,000 in 2018 to over 5.8 million in 2022, Monzo's financial crime controls failed to keep pace with its expansion. The FCA emphasized the importance of banks in combating financial crime, stating that they must have robust systems to prevent illicit funds from entering the financial system. Therese Chambers, FCA joint executive director of enforcement and market oversight, criticized Monzo for falling short of expectations.

According to the source: BBC.