The case is the first criminal prosecution under money-laundering regulations that went into effect in 2007, the U.K.’s Financial Conduct Authority said. Under sentencing guidelines, the bank could face penalties of up to 340 million pounds ($462 million).
The FCA alleged NatWest failed to monitor suspected money laundering activity by a client that deposited about 365 million pounds in its bank accounts over five years, of which 264 million was in cash. The activity was alleged to be in violation of the U.K.’s AML laws including what is now the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations of 2017.
“We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016,” NatWest CEO Alison Rose said in a statement. “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.”
According to NatWest’s statement, the bank currently has more than 5,000 staff in specialist financial crime roles, dedicated to detecting and preventing financial crime under the leadership and focus of a centralized bank-wide ‘FinCrime Hub.’ As part of its ongoing program of investment in its people, processes and technology, NatWest’s financial plans already include over 1billion pounds to further strengthen financial crime controls over the next five years.
The case has been remitted to the Crown Court for sentencing which will be determined at a subsequent hearing, expected to be in four to eight weeks’ time. No individuals are expected to be charged as part of the prosecution. A provision will be made in NatWest’s Q3 2021 financial accounts in anticipation of a potential fine being imposed at that hearing. 