Starling Bank Faces £29 Million Fine for Flawed Sanctions Checks

Starling Bank Hits the Nuke Room: £29 m Fine for Sanctions Slip‑Ups

Imagine opening a bank account without checking if the customer is on a sanctions list. That’s exactly what happened at Starling Bank, and the Financial Conduct Authority has slapped a £29 million fine on the fintech.

What Went Wrong?

Between September 2021 and November 2023, Starling opened 54,000 accounts for 49,000 high‑risk customers who were, allegedly, on sanctioned lists.
The bank’s automated screening system apparently missed the mark—failing to flag these accounts or keep up with rolling changes to global sanctions lists.
In an era where sanctions are tighter than a drum, this is a total blow‑up.

Why the FCA is Squeezing the Lips

When the Russian invasion of Ukraine sparked the most massive sanctions blitz in history, banks worldwide were urged to do a deep dive into their clientele—closing or freezing any accounts tied to the Kremlin. Over time, that vigilance tapered, but the FCA’s latest move tells us otherwise: the regulators are stepping up their game.

As Stuart Favier, Insurance Client Manager at Northdoor plc, puts it: “Once you’re playing the sanctions game, you can’t afford to be lax. Even a few accounts slipping through is a red flag. The Starling fine proves that lapses in tech lead to real financial pain.”

Automated Solutions: The New Mandate

For firms that’re still using spreadsheets and manual checks, the message is clear:

Stop hoping technology will sort it out for you. Turn to real‑time, automated screening tools.
These systems generate full audit trails—every single search logged, ready for the regulator’s review.
With fines hitting tens of millions, the cost of a snow‑flake error is way too high.

Starling’s Wake‑Up Call

If the banking sector thinks it can take a breather, Starling’s case says otherwise: you must keep up with sanctions lists in real time, or risk a hefty fine. The takeaway? Deploy a robust tech stack, conduct regular compliance drills, and let the automation do the heavy lifting.

Future‑proof your金融 operations—after all, nobody likes to be the next headline in a sanctions story.