Round up of NatWest’s fine of £264.8 million for anti-money laundering failures

- 14 December, 2021
FCA Press Release: NatWest Fined £264.8 million for Anti-Money Laundering Failures

National Westminster Bank Plc (NatWest) was today fined £264,772,619.95 following convictions for three offences of failing to comply with money laundering regulations… The charges covered NatWest’s failure to properly monitor the activity of a commercial customer, Fowler Oldfield, a jewellery business based in Bradford, between 8 November 2012 to 23 June 2016. When taking on the customer, NatWest initially understood it would not handle cash from the Fowler Oldfield business. However, over the course of the customer relationship approximately £365m was deposited with the bank, of which around £264m was in cash…. Read the full press release here: https://www.fca.org.uk/news/press-releases/natwest-fined-264.8million-anti-money-laundering-failures

Southwark Crown Court: Sentencing Remarks of Mrs Justice Cockerill

For the offences of:

    1. Failing to comply with the requirement to conduct ongoing monitoring of a business relationship contrary to regulations 8(1) and 45(1) of the Money Laundering Regulations 2007.
    2. Failing to comply with the requirement to determine the extent of ongoing monitoring on a risk-sensitive basis and be able to demonstrate to its supervisory authority that the extent of the ongoing monitoring is appropriate in view of the risks of money laundering and terrorist financing contrary to regulations 8(3) and 45(1) of the Money Laundering Regulations 2007.
    3. Failing to apply enhanced ongoing monitoring to its business relationship with Fowler Oldfield, in a situation which by its nature presented a higher risk of money laundering and terrorist financing contrary to regulations 14(1) and 45(1) of the Money Laundering Regulations 2007.

I sentence NatWest as follows:

    1. A confiscation Order in the amount of £460,047.04
    2. A fine in the amount of £264,772,619.95;
    3. Payment of the costs of the FCA in the amount of £4,297,466.27.

Read the full sentencing remarks here: https://www.judiciary.uk/wp-content/uploads/2021/12/FCA-v-Natwest-Sentencing-remarks-131221.pdf

Statement of Facts

This is a Statement of Facts, agreed between the Financial Conduct Authority (“FCA”) and National Westminster Bank Plc (“NatWest”, “the Bank”) about the commission by NatWest of offences of failing to comply with the Money Laundering Regulations 2007 (“MLR 2007”). It relates to the draft indictment accompanying it.

During the period 8 November 2012 to 23 June 2016 (the “Indictment Period”), NatWest was a ‘credit institution’ under the MLR 2007. As such, the Bank was a ‘relevant person’ required to adhere to certain requirements designed to prevent it from being used for money laundering purposes. The MLR 2007 included requirements to carry out ongoing monitoring of business relationships (Regulation 8(1)), to do so on a risk-sensitive basis (Regulation 8(3)) and to carry out enhanced monitoring in high-risk cases (Regulation 14). Failing to comply with each of those requirements constituted a criminal offence by virtue of Regulation 45(1). Whether or not a relevant person has committed an offence is to be considered in light of their compliance with relevant approved guidance, namely that issued by the Joint Money Laundering Steering Group (the “JMLSG”)… Read the full statement of facts here: https://www.fca.org.uk/publication/corporate/agreed-statement-facts-fca-national-westminster-bank.pdf

Previous FCA Press Releases

07/10/2021 – ‘NatWest Plc pleads guilty in criminal proceedings’: https://www.fca.org.uk/news/press-releases/natwest-plc-pleads-guilty-criminal-proceedings

16/03/2021 – ‘FCA starts criminal proceedings against NatWest Plc’: https://www.fca.org.uk/news/press-releases/fca-starts-criminal-proceedings-against-natwest-plc