NatWest facing £340m fine after historic money laundering prosecution
7 October 2021, 15:20
NatWest is facing a fine of up to £340m after admitting failure to prevent alleged money laundering.
The bank admitted three counts of failing to properly monitor £365m deposited into a customer's account.
It’s the first time a financial institution has faced criminal prosecution under anti-money laundering laws in the UK.
The case related to Fowler Oldfield, a century-old jeweller based in Bradford which was shut down following a police raid in 2016.
Financial Conduct Authority (FCA) prosecutor Clare Montgomery told Westminster Magistrates’ Court that when Fowler Oldfield was taken on as a client by NatWest, its predicted turnover was said to be £15m per annum.
However, it deposited £365m over the space of almost five years – with £264m in cash.
'Poorer areas could have even larger rises in council tax.'
She said that at its height, Fowler Oldfield deposited up to £1.8m a day.
NatWest chief executive Alison Rose said: "We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016.
"NatWest has a vital part to play in detecting and preventing financial crime and we take extremely seriously our responsibility to prevent money laundering by third parties.”
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Ms Rose added the bank has invested “significant resources” to combat financial crime in the five years since.
On the potential fine facing NatWest, Ms Montgomery said: "The appropriate harm figure is going to be around £170m, with a multiplier of 200%." This would mean £340m.
A sentencing hearing, in which a judge will decide the final figure, will take place at Southwark Crown Court on or before 8 December.
