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Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

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Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

Starling Bank, the British digital lender backed by Goldman Sachs, has been fined £29 million ($38.5 million) by the U.K.’s Financial Conduct Authority (FCA) for failing to adequately address financial crime risks. The penalty was imposed due to weaknesses in Starling’s financial sanctions screening system and for repeatedly breaching rules related to opening accounts for high-risk customers.

Between 2017 and 2023, Starling grew from 43,000 to 3.6 million customers, but its internal controls to combat financial crimes did not keep pace with this rapid expansion. Despite agreeing to stop opening accounts for high-risk customers during the investigation, Starling still opened 54,000 accounts for 49,000 high-risk individuals between September 2021 and November 2023, violating FCA guidelines.

In response, Starling Bank acknowledged the failings and emphasized steps taken to strengthen its risk management systems. David Sproul, chairman of Starling Bank, apologized and assured that the bank had learned from its past mistakes. He noted the company’s efforts to improve governance and controls, which he believes will support the bank’s ongoing growth.

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The FCA concluded its investigation in 14 months, significantly faster than its typical 42-month average for similar cases.

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PayPal Outage Disrupts Services for Thousands Worldwide

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PayPal Outage Disrupts Services for Thousands Worldwide

Thousands of PayPal users were unable to access their accounts or process payments on Thursday due to a brief global outage, the company confirmed.

PayPal acknowledged the issue on its service status page, describing it as “a system issue” that impacted multiple products, including account withdrawals and express checkout. Cryptocurrency services and its peer-to-peer payment app, Venmo, were also affected.

The outage, which began at 10:53 UTC, was resolved swiftly, according to PayPal. Despite the brief duration, the disruption caused significant inconvenience, with users reporting difficulties logging into their accounts and completing transactions.

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Downdetector, a platform outage tracker, registered over 7,000 complaints from users by 12:12 GMT. Many customers shared their frustration on social media, posting screenshots of error messages such as “please check your entries and try again” when attempting to log in.

PayPal apologized for the disruption, assuring users that its systems were back to normal.

Founded in 1998, PayPal has grown into a leading global financial institution. The company reported a record 432 million active accounts as of the end of September, cementing its role in the digital payments ecosystem.

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DOJ Proposes Chrome Sale to Curb Google’s Search Monopoly

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DOJ Proposes Chrome Sale to Curb Google's Search Monopoly

The U.S. Department of Justice (DOJ) has proposed that Google sell its Chrome browser as part of measures to break its dominance in online search. The proposal, included in a court filing on Wednesday, aims to restore competition following a landmark anti-trust ruling in August that found Google illegally suppressed its competitors.

Key Proposals by DOJ

  1. Chrome Divestiture: The DOJ suggests Google sell Chrome, the world’s leading web browser, to limit its ability to funnel users to its search engine.
  2. End Default Search Agreements: The government seeks to ban Google from contracts with companies like Apple and Samsung that make Google Search the default on their devices.
  3. Five-Year Browser Market Ban: Google would be prohibited from re-entering the browser market for five years to allow competition to flourish.

The filing, supported by several U.S. states, argues these steps are necessary to counteract Google’s alleged stifling of competition in general search and search advertising markets.

Google’s Response

Google criticized the DOJ’s proposal as a “radical interventionist agenda,” claiming it would harm both consumers and the broader U.S. technology sector.

  • Kent Walker, Google’s president of global affairs, said the plan would “break a range of Google products… that people love and find helpful.”
  • Google plans to submit its counter-proposals by December 20.

Impact and Timeline

Judge Amit Mehta is expected to make a final decision by mid-2025. The DOJ’s filing follows revelations that Google controls 90% of global online searches, leveraging its ownership of Chrome and the Android operating system to maintain its dominance.

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Geeksvillage Marks 11th Anniversary

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Geeksvillage Marks 11th Anniversary
Geeksvillage Marks 11th Anniversary

In a remarkable celebration of innovation and dedication, Geeksvillage has proudly announced its 11th anniversary, marking over a decade of transformative impact in the business world.

Founded with a mission to empower SMEs and help them reach international standards, Geeksvillage has consistently provided businesses with tools and solutions that have enabled them to thrive. From affordable web design services to innovative digital strategies, the company has established itself as a trusted partner for growth and success.

Geeksvillage Marks 11th Anniversary Statement

In a statement shared online, Geeksvillage expressed gratitude to its clients and supporters:

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“Today, we celebrate not just a milestone but 11 years of passion, innovation, and relentless dedication. For the past 11 years, we have helped SMEs grow into international standards and given businesses the wings to soar. This achievement belongs to everyone who has been part of our story.”

The statement particularly acknowledged the role of its clients, whose patronage has been the cornerstone of the company’s journey.

Geeksvillage also took the opportunity to thank its supportive community for standing by them through the years, underscoring the collective effort that has driven their success.

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Reflecting on its journey, the company highlighted the challenges that shaped its evolution and the accomplishments that fueled its growth. As Geeksvillage looks to the future, it remains committed to delivering excellence and empowering businesses on a larger scale.

With 11 years in the bag and countless possibilities ahead, Geeksvillage invites everyone to celebrate this milestone and join them in building an even brighter future.

Here’s to Geeksvillage – 11 years of transforming businesses and counting!

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