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FCA review finds weaknesses in some challenger banks’ financial crime controls

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A review by the FCA has found that challenger banks need to improve how they assess financial crime risk, with some failing to adequately check their customers’ income and occupation.

The review, conducted over 2021, identified a rise in the number of Suspicious Activity Reports reported by challenger banks, raising concerns about the adequacy of these banks’ checks when taking on new customers.

Challenger banks aim to compete with traditional high street banks using smarter technology and more up-to-date IT systems.