The Financial Conduct Authority (FCA) is stronger than ever in enforcing compliance – and getting it wrong can cost firms millions, damage reputation, and harm customers. Here are three recent examples that show why compliance isn’t optional:
£44m fine for weak financial crime controls — Nationwide Building Society
The FCA fined Nationwide £44 million for failing to maintain adequate anti-financial crime systems and controls.
Because the firm didn’t properly assess and monitor customer risk, it repeatedly missed red flags and failed to spot major suspicious activity — including a customer receiving millions in fraudulent furlough payments through personal accounts. The regulator stressed that firms must act quickly to fix known weaknesses or face heavy penalties.
Lesson: Strong AML and financial crime systems aren’t a ‘nice to have’ – they’re fundamental. If you don’t control risk effectively, the FCA will hold your firm accountable.
£29m sanction for financial crime failings – Starling Bank
The FCA imposed a £28.9 million fine on Starling Bank for failures in its financial crime systems — particularly around sanctions screening and controls over high-risk customers.
Lesson: Even established banks can fall foul of regulatory standards if monitoring, screening and risk-based controls aren’t fit for purpose. This isn’t about size or reputation – it’s about systems that protect consumers and markets.
Former Carillion CEO fined for misleading investors
In February 2026, the FCA fined the former chief executive of Carillion £237,700 for issuing misleading financial statements before the company’s £7 billion collapse – after withdrawing his challenge against the regulator’s findings. The FCA concluded he acted recklessly and didn’t disclose serious business problems to investors and the board.
Lesson: FCA compliance isn’t just about internal controls – it extends to truthful, transparent communication with markets and stakeholders. Misleading investors isn’t a regulatory oversight – it’s a breach with serious consequences.
