NatWest money laundering enforcement

Mar 22, 2021 12:00:00 AM

What has happened?

The FCA announced in March 2021 that it had commenced criminal proceedings against National Westminster Bank Plc in respect of offences under the Money Laundering Regulations 2007 (the MLR 2007).

What do you need to do?

The FCA alleges that NatWest Bank failed to adhere to the requirements of regulations 8(1), 8(3) and 14(1) of MLR 2007 between 11 November 2011 and 19 October 2016. These regulations require the firm to determine, conduct and demonstrate risk-sensitive due diligence and ongoing monitoring of its relationships with its customers for the purposes of preventing money laundering.

The case arose from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest. The FCA alleges that large cash deposits were made into the customer’s accounts – around £365 million was paid into the customer’s accounts, of which around £264 million was in cash. It has subsequently been disclosed that the customer was Bradford-based gold dealer Fowler Oldfield, which was shut down in 2016.

It is also alleged that NatWest’s systems and controls failed to adequately monitor and scrutinise this activity. The investigation into these failures began in 2017.

NatWest is scheduled to appear at Westminster Magistrates’ Court on 14 April 2021, and this is the first criminal prosecution brought under the MLR 2007 by the FCA and also the first prosecution under the MLR against a bank. No individuals are being charged as part of these proceedings.

How can we help you?

If you’d like to know more about how we can help you with any aspect of your financial crime arrangements, or any other regulatory compliance issues, our expert team is here to help.

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