AML: UK Financial Conduct Authority (FCA) commences proceedings against NatWest.
March 2021The Financial Conduct Authority, (FCA), has started proceedings against the state-owned NatWest for allegedly failing to prevent money laundering. This is the first criminal prosecution taken by the Regulator under the Money Laundering Regulations 2007 and also the first prosecution under these regulations against a bank.
Under the regulations firms are required 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 FCA alleges that NatWest did not monitor and properly scrutinise transactions on a corporate customer account which was collecting large cash deposits. Between November 2011 and October 2016, it is believed that £365m was paid into the account, including £264m in cash.
If NatWest is found guilty of breaching the anti-money laundering rules it could face unlimited fines.
NatWest is due to appear in court on the 14th of April 2021 to respond to the charges.
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HEREAnneMarie Whelan
Regulatory Consultant