West financial regulator, the Financial Conduct Authority (FCA) has published a damning report on neobanks and their link to acts of financial crime. Some of these establishments offering to open an account remotely in a few minutes do not properly check customer references.

The banking policeman seeks to assess the risks posed by "neobanks" in terms of money laundering and terrorist financing. These new digital players offer a fully remote relationship and account opening in minutes. Without disclosing the names of the institutions audited, the FCA concludes, following its 2021 investigation, that "the weaknesses found create an environment conducive to greater risks of financial crime".

Some neobanks "do not properly verify the income and profession of their clients", and others have not even "set up a financial crime risk assessment", says the regulator, which also found "inefficient management of transaction monitoring alerts".