Not upheld: Cifas fraud marker registration; potential money laundering or fraud complaint against Monzo Bank Limited

Decision detail

Summary

Mr A complained that Monzo Bank Limited improperly recorded information about him on the Cifas national fraud database when it closed his account in August 2024. The complaint arose after Mr A received a £2,000 payment from a third party and provided inconsistent explanations about the payment's purpose and his relationship with the sender. The ombudsman found that Monzo had reasonable grounds to believe fraud or financial crime had occurred, supported by Mr A's changing account of events and additional confidential information. The ombudsman did not uphold the complaint, finding that Monzo acted fairly in recording the Cifas marker.

The Ombudsman's reasoning

The ombudsman applied the legal standard for Cifas markers, requiring reasonable grounds to believe fraud or financial crime occurred, with clear, relevant and rigorous evidence of deliberate complicity. The ombudsman found Mr A's inconsistent explanations about the payment's purpose and his relationship with the sender unpersuasive. Combined with Monzo's confidential information about the payment and the circumstances, the ombudsman concluded Monzo had sufficient grounds to record the marker.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website