NatWest bank face a huge fine after pleading guilty to failing to prevent alleged money laundering of near £400m by one of its customers.
NatWest “deeply regret” that between 2012 and 2016 it failed to “adequately monitor and therefore prevent money laundering by one” customer. This is the first time a British bank has ever admitted an offence like this.
A court hearing heard how the state backed lender is now facing a large fine.
The case, brought by the Financial Conduct Authority (FCA), alleged the bank’s failure to monitor suspicious activity of a client. Over a five year period, the customer deposited a total of around £365m in their accounts. About £264m of the amount deposited was in cash.
The FCA announced the criminal action in March, making it the first against a bank under a law on money laundering from 2007.
Relating to Fowler Oldfield Ltd’s account between 7 November 2013 and 23 June 2016, NatWest did not adhere to legislation on anti-money laundering.
Fowler Oldfield
Following a police raid in 2016, Bradford based century old jeweller, Fowler Oldfield was shut down.
When NatWest took on Fowler Oldfield as a client, the firm had a predicted turnover of £15m a year. However, in the space of nearly five years the company deposited a sum of £365m.
FCA prosecutor Clare Montgomery QC says the bank agreed it would not handle cash deposits. But it allowed Fowler Oldfield to deposit £264m in cash. At its height, the jeweller deposited up to £1.8m per day.
Westminster magistrates court heard that the “likely sentence is a very large fine”.
At the height of the 2008 financial crisis, NatWest received a £45bn bailout. The bank currently remains 55% owned by the tax payer.
Chief executive Alison Rose says NatWest plays a “vital part” in “detecting and preventing financial crime”. The bank takes its “responsibility to prevent money laundering by third parties” “extremely seriously”. Following the case, the firm has “invested significant resources and continue to enhance efforts to effectively combat financial crime”.
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