Kyckr notes that subpar data quality accounts for 68% of UK AML penalties.

2026-02-04

According to Kyckr’s recent report, data deficiencies have played a significant role in 68% of Financial Conduct Authority (FCA) enforcement cases for anti-money laundering (AML) non-compliance between 2020 and 2025.

Report Insights: The Data Blind Spot

The report, titled The Data Blind Spot: Uncovering a Major Cause of UK AML Fines, delves into AML failings in UK financial institutions by examining 22 FCA Final Notices that collectively account for over GBP 430 million in fines.

In addition to these findings, the report also underscores that the FCA is now scrutinizing firms beyond their policies on paper. The enforcement actions are increasingly focused on whether organizations can effectively obtain, verify, and update customer information in practical scenarios.

Key Categories of Data Failure

The report identifies four primary categories of data failure that consistently highlight the root causes of information gaps:

Outdated or missing information, which contributed to 45% of fines. This includes a reliance on outdated politically exposed persons (PEPs) and investor lists, as well as insufficient customer data for contextualizing transactions.
Failing to identify the ultimate beneficial owner (UBO) of an entity, contributing to 32% of fines. This involves not knowing who ultimately controls an entity, which is crucial for building a comprehensive understanding of financial crime dynamics.
Weak verification of wealth and funds, also accounting for 32% of fines. This includes not having knowledge about the financial resources available to a business, which is essential for contextualizing customer transactions.
Mismatches between customer declarations and public records, representing 18% of fines. This involves failing to detect discrepancies between what customers state and their public record information.

These findings emphasize that policy alone is insufficient; data quality has become a critical component for effective AML compliance. Companies must demonstrate the accuracy and real-time verification of customer information, leading Kyckr to focus on providing direct and ongoing access to authoritative company data for compliance teams, drawing from over 300 global sources.