One of the UK’s main regulators has warned challenger banks to stop cutting corners in combating financial crime so that customers can set up accounts quickly and easily.
Sarah Pritchard, who heads the market division of the City regulator, said that there cannot be a “trade-off” between getting customers to come into the fold and the checks that all banks need to do.
The Financial Conduct Authority (FCA) found that many challenger banks were not doing enough to fight financial crime.
Some of the banks did not even have a so-called customer risk assessment system set up.
The assessments are key ways of ensuring that a bank knows who its customers are and can manage the risks of money laundering.
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