According to the FCA, Starling Bank's failure to comply with AML and KYC regulations "led to significant losses" for the bank, although the exact nature of these losses is not clear. The bank's failure to comply with these regulations "also put its customers at risk", the FCA said.

The FCA's findings were the result of an investigation into Starling Bank's AML and KYC controls, which was launched in 2021. The investigation found that the bank's systems and controls were not adequate to meet the requirements of the AML and KYC regulations.