City watchdog launches criminal probe into Natwest over money laundering failures after £365m was paid in to bank by Bradford based gold dealer
- The Financial Conduct Authority (FCA) is investigating the NatWest Group
- Alleges that ‘increasingly large cash deposits’ were made into customer account
- Around £365 million was paid in – of which some £264 million was in cash
- Claims NatWest’s systems and controls failed to properly monitor the activity
NatWest is being investigated by the City watchdog over alleged money laundering failures after £365million was paid into the bank by a Bradford-based gold dealer.
The Financial Conduct Authority (FCA) claims that ‘increasingly large cash deposits’ were made into a NatWest company account – of which some £264million was in cash.
It says NatWest’s systems and controls failed to properly monitor and scrutinise this activity, which took place between November 11, 2011 and October 19, 2016.
The probe relates to the bank’s relationship with Bradford-based gold dealer and jeweller Fowler Oldfield Ltd, a court summary revealed.
The 122-year-old firm was liquidated after a police raid in 2016, a source familiar with the matter said.
Up to £2million in cash was delivered to Fowler Oldfield every day as part of an ‘extremely sophisticated’ money laundering scheme, a 2019 court case – reported in The Financial Times – heard.
NatWest (file image) is being investigated by the City watchdog over alleged money laundering failures after £365million was paid into the bank by a Bradford-based gold dealer
In the last statement by liquidators for Fowler Oldfield – dated December 2020 and filed at Companies House – they said NatWest was the secured creditor and that the police held the company’s seized assets.
Telephone numbers listed for Fowler Oldfield did not work.
Representatives for the bank’s taxpayer-backed parent firm the NatWest Group are due to appear at Westminster Magistrates’ Court on April 14.
It marks the first time the FCA has launched criminal prosecution under the money laundering regulations – and the first time the rules have been used to prosecute a bank.
NatWest faces an unlimited fine if convicted. The FCA could also say the bank’s regulatory licences must not be renewed – but sources claim it will not take this course of action.
The FCA said the money laundering rules require firms 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’.
NatWest Group (file image), which is 62 per cent owned by the Government after a mammoth bailout at the height of the financial crisis, said it had been co-operating with the FCA’s investigation to date
No individuals are being charged as part of the proceedings.
The regulator first alerted NatWest Group – formerly Royal Bank of Scotland – of the investigation in July 2017.
NatWest Group, which is 62 per cent owned by the Government after a mammoth bailout at the height of the financial crisis, said it had been co-operating with the FCA’s investigation to date.
The Financial Conduct Authority (FCA) (file image) claims that ‘increasingly large cash deposits’ were made into a NatWest company account – of which some £264million was in cash
The bank said: ‘NatWest Group takes extremely seriously its responsibility to seek to prevent money laundering by third parties and accordingly has made significant, multi-year investments in its financial crime systems and controls.’
The group said the Financial Conduct Authority (FCA) action relates to the handling of the accounts of a UK incorporated customer between November 11, 2011, and October 19, 2016.
NatWest Group said it had been co-operating with the FCA’s investigation to date.
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