Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

Published On Oct 2, 2024, 6:03 AM

Goldman Sachs-backed Starling Bank was fined £29 million ($38.5 million) by the UK's Financial Conduct Authority (FCA) for breaches related to financial crime prevention, particularly for failing to adequately screen for financial sanctions and for opening accounts for high-risk customers. This follows the bank's rapid growth from 43,000 customers in 2017 to 3.6 million by 2023. Starling had expressed intentions to go public, which could be affected by this incident, especially given the violation of compliance regulations.

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The fine and compliance issues might negatively impact Starling Bank's reputation and its timeline for going public. Investors may view this as a risk factor, leading to lower confidence in the stock's future performance.

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