Monzo investigated over possible money laundering violations

The Financial Conduct Authority (FCA) has started an investigation into Monzo’s compliance with money laundering regulations.

In its latest financial results, the online bank revealed that the UK watchdog is examining whether it has breached some of the FCA Principles for Businesses and related FCA rules for anti-money laundering and financial crime systems and controls between 1 October 2018 to 30 April 2021.

The investigation, which is looking into both potential civil and criminal liability, comes as the challenger bank reports a £115 million loss in its latest financial year. This is an increase on losses from the previous year of £113.8 million.

“We have losses today and expect to have more in the short term,” said Monzo in its financial report. “Which is why we plan to raise the capital we need to support the business and meet our capital requirements in FY2022.”

The bank added: “There is a risk we can’t raise enough capital, on acceptable terms, when we plan to.”

Monzo warned that a material uncertainty exists that “may cast significant doubt” on the group’s ability to continue as a going concern for a period of twelve months from when the financial statements are authorised for issue.

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