I know there are lots of people who are really interested in how our AML and KYC works behind the scenes.
I therefore commend Moneybox at 12pm today on Radio 4 to you all! Hopefully there will be some interesting titbits in there 
It will be on iPlayer here 
Hey Hugh, sorry for the amateur question but: what does AML and KYC stand for?
Anti Money Laundering and Know Your Customer.
Basically itās about ensuring compliance with various laws. Some more about KYC in the blog below
Ahh of course, thanks!
In brief.
Ā£200m of peopleās money was lost last year through āpush fraudā - a criminal impersonating a bank and duping someone into transferring money into a criminalās account. Criminals are making it look like their number is the bankās.
A couple called Sophie and Steve were duped into transferring Ā£10k from their Co-op and Natwest accounts into another account as the ābankā said they had been compromised. At the moment, thereās no recall for transfer.
How do we prove the bank is calling? They ask us many questions to check who we are. Isnāt it fair that we are able to ask the same questions when our ābankā calls us?
People should never make a payment over the phone at the request of someone prorporting to be their bank.
The coupleās money ended up going into a Monzo account, so @natasha was interviewed.
She said that right now, wrong names do not trigger alarms bells. Names are not checked. This is industry wide.
MB: Why do banks ignore the name?
Natasha says itās difficult to check the name and to get an exact match. Incorrect match rate would be very high.
MB: Isnāt it a false sense of security asking for names? This type of fraud is not uncommon.
Natasha says that Monzo can freeze accounts almost instantly. There are clever technical things that Monzo does such as machine learning and very advanced transaction monitoring. Monzo are always making improvements. Recent improvements have saved customers of other banks half a million pounds.
She goes on to say that Monzo is keen to talk to all banks to improve learning and data sharing, but there doesnāt seem to be much impetuous from other banks to talk openly about fraud.
MB: Who should be responsible then?
Richard Emery a financial advisor, and believes that liability is with Monzo. Monzo allowed that money to be moved from that account. He doesnāt believe that Monzo had a properly authenticated transaction request. It was inheritantly fraudulent because it came from a crook. This isnāt just a problem with Monzo, but all banks.
Heās concerned about new rules that are coming from the Payment Systems Regulator as it doesnāt show clear liability so no one will take responsibility. Second concern is the proposed ācontingent reimbursement schemeā is run by the Financial Ombudsman.
Richard says that this whole issue is being debated in Parliament on Thursday - but what needs to happen is victims should be able to make a complaint against the receiving back. Banks are on notice to implement something called āAccount name verificationā which should help with these incidents.
typed up quickly so apologies for any mistakes in notation
This is awesome, thanks for typing it all up @tomsr 
Which bank did the fraudster transfer the funds from Monzo to??
Co-op and Natwest. Amended post to reflect.
Thanks, and sadly I guess Ā£10k is below the thresholds of the police being overly interested??
Iām sure this canāt be commented on, but the fraudster evidently got past KYC and any āmachine learningā protections. If the police arenāt interested, maybe make the fraudsters sign up video public
Data Protection Act, canāt do it unfortunately.
She goes on to say that Monzo is keen to talk to all banks to improve learning and data sharing, but there doesnāt seem to be much impetuous from other banks to talk openly about fraud
Says the company who deletes every fraud-related post as if pushing the information underground is going to solve anything. Hint: security by obscurity never works for long. 
Iām really sorry you feel that we arenāt being transparent about this 
We do try and be as open as possible however, as mentioned in this thread, unfortunately there are some things we are not allowed to discuss publicly, even if we wanted to.
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