Updated: 2nd January, 2025

Did you know your business could be at risk of £100 million in fines and irreparable reputation damage – simply for inadequately verifying the identity of your customers?

Despite being one of the biggest banks in the UK, Barclays was fined £50.1 million for failing to monitor transactions for suspicious activity.

It turned out fraud pirates were using their accounts to launder money.

NatWest Markets was fined a whopping £226.4 million for similar failures, while Standard Chartered Bank was hit £102.2 million.

But it’s not just multinational enterprises feeling the wrath of the FCA.

Massive fines have been handed down to SMEs for Know Your Customer (KYC) and anti-money laundering (AML) failures too.

Businesses such as MTK Financial Services, JNP & Co Accountants and BWC Forex have been fined up to £262,500 – an amount that would bankrupt thousands of SMEs around the UK.

Why Your Business Faces Millions In Unexpected Fines – Even If You Think You’re Compliant

Despite regular warnings from the FCA, many businesses fail to stay up to date with ever-changing KYC and AML compliance regulations.

When Deutsche Bank was fined £163,076,224 in 2017, the Director of Enforcement and Market Oversight at the FCA, Mark Steward, said:

However, since that time almost £1.5 billion in fines have been handed down. Many companies remain completely unaware they are non-compliant and fail to properly assess their risk.

Is Your Business At Risk Of AML Or KYC Compliance Breaches?

While banks, telcos and financial institutions are traditional targets, online pirates are setting their sights on vulnerable SMEs who may have overlooked their KYC and anti-money laundering responsibilities.

Identity, payment, cybersecurity, insurance, marketing and SIM swap fraud have all skyrocketed in recent years, with fraud now the #1 crime in the UK.

You could be a target for fraud and FCA fines if your business fails to:

  • Thoroughly verify the identity of new customers
  • Monitor suspicious activity
  • Keep adequate records and compliance documents
  • Train staff on anti-money laundering and KYC protocols
  • Keep up with regulation changes in the space

 

Determine Your Compliance Risk Using The Short 30-Second Quiz

The best place to start with KYC and AML compliance is to understand your level of risk. The 30-second ‘Compliance Risk’ check below will determine whether you’re vulnerable to fraud and potential fines from the FCA for compliance breaches, and give you actionable steps you can take to protect your business virtually overnight.

CHECK MY COMPLIANCE RISK NOW