Who to trust when it comes to FX?
It was announced last week that Starling Bank has been fined £29m for facilitating financial crime. And they are not alone. In its latest annual report published in June 2024, Monzo disclosed that although the FCA had decided to discontinue assessing criminal liability into potential AML (Anti-Money Laundering) breaches, the regulator will continue its investigation as a civil matter, which may result in fines. Even Revolut (who have just been granted a UK bank licence ‘with restrictions’) who secured its EU banking licence through Lithuania in 2018, were then fined €200,000 for AML failings as well as €70,000 for failing to file its accounts on time. Revolut claimed the delay was due to ‘technical reasons’ which is a little embarrassing for a flagship fintech company. And its not just the challenger banks that have been caught out. Wise, another popular fintech money services transmitter were fined $360,000 for AML breaches by the Abu Dhabi regulator back in 2022.
This may lead you to think it may be safer to return to the high street banks to find a trusted payments partner but the news there is even worse. Barclays Bank plc, Citibank NA, JPMorgan Chase Bank, The Royal Bank of Scotland and HSBC Bank plc have all been fined over £200m for failing to control business practices concerning its FX business in London. National Westminster Bank Plc, Deutsche Bank AG, Santander UK plc have all been fined over £100m for AML failings and Lloyd's Banking Group were fined over £100m for serious misconduct relating to LIBOR & other benchmark failings*. It would have been quicker to list the banks that haven’t been fined.
The traditional banks are clearly prioritising profit over governance and have been caught out. The competitive nature of the banking industry means they are always pushing the boundaries of what is acceptable in order to cut costs leaving them open to these type of failings. The afore mentioned challenger fintech’s would like you to think they are different, so perhaps it is their rapid growth which has exposed failings rather than gross-negligence but their priorities are still flawed, aggressively chasing sky high valuations over good outcomes for their clients.
So who can you trust? Well, I can tell you who hasn’t been fined – Pathfinder FX.
In all seriousness, it highlights the broader issue that traditional banks and fast growth fintech’s may not be the best option especially when there is an alternative way. The payments market place is broad and there is ample room for a growing number of smaller independent firms who are able to offer a safe, reliable alternative providing a personal and cost-effective approach to managing finances. The more human approach gives these firms clear oversight over their business and client activities allowing them to spot anomalies and react to potential issues far faster than the behemoths within the marketplace.
Pathfinder FX is a Certified B Corporation meaning we meet high standards of social and environmental performance, transparency, and accountability with a commitment to continuous improvement. It means that all stakeholders, including you the client, are the priority in every decision that is taken as a business. The wealth of experience present within the business (20 years+ within financial markets for each Director) means there is a deep understanding of how to maintain good corporate governance whilst delivering exceptional customer service.
Discover how PathFinder FX can help you and your business navigate your foreign currency exchange and international payments safely, securely and cost-effectively.
Contact Pathfinder FX today on 📞 01743 290 955
*Ref: SkillCast https://www.skillcast.com/blog/20-biggest-fca-fines
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