The Financial Conduct Authority (FCA) has commenced criminal proceedings against National Westminster Bank Plc (NatWest) for its violations of the country’s Money Laundering Regulations 2007 (MLR 2007) during 2011-16. The FCA has not charged any individuals under these proceedings.
Regulations under the MLR 2007 require financial institutions like NatWest to conduct risk-based due diligence and ongoing monitoring of business relationships so as to prevent money laundering. However, the FCA has alleged that NatWest failed to adequately conduct, monitor and review these activities.
Suspicion arose after NatWest did not properly handle the funds that were deposited into a UK-based account. This account allegedly received large cash deposits worth over £264 million ($369m). Notably, NatWest is the first bank that the FCA has prosecuted under the MLR 2007.
Source: Financial Conduct Authority, UK