The Financial Conduct Authority (FCA) has commenced criminal proceedings against NatWest over alleged offences under the Money Laundering Regulations 2007 (MLR 2007).
The FCA alleges that NatWest 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 arises from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest. The FCA alleges that increasingly large cash deposits were made into the customer’s accounts.
Overall, the bank has been charged with paying around £365 million into the customer’s accounts, of which around £264 million was in cash.
It is also maintained that NatWest’s systems and controls failed to adequately monitor and scrutinise this activity.
NatWest is scheduled to appear at Westminster Magistrates’ Court on 14 April 2021. his is the first criminal prosecution under the MLR 2007 by the FCA and the first prosecution under the MLR against a bank.
No individuals are being charged as part of these proceedings.
