The British financial regulator announced on Monday that it has initiated criminal proceedings against National Westminster Bank Plc (NatWest) for the bank\u2019s alleged involvement in money laundering offenses.<\/p>\n
According to the Financial Conduct Authority\u2019s allegations, the bank failed to conduct the mandatory risk due dillegiance for several transactions made between 11 November 2011 and 19 October 2016.<\/p>\n
In addition, the regulator detailed that the lapses were made in handling the large cash-based deposits into an account owned by a UK incorporated customer. Out of around \u00a3365 million deposited in that particular account, \u00a3264 million was in cash.<\/p>\n
\u201cIt is alleged that NatWest’s systems and controls failed to adequately monitor and scrutinize this activity,\u201d the official announcement by the market watchdog noted.<\/p>\n
This is the first criminal prosecution under the 2007 UK money laundering law and also the first proceeding against a lender.<\/p>\n
\u201cThese regulations require the firm 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,\u201d the regulator added.<\/p>\n
Established in 1968, NatWest is a major retail and commercial lender in the United Kingdom with reported assets of almost \u00a3800 billion. In an official statement, the bank revealed that it was notified of the FCA\u2019s investigation in 2017 and has since been cooperating with the financial regulator.<\/p>\n
\u201cNatWest 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,\u201d the bank said in a statement.<\/p>\n
Despite serious charges, no individual of the bank was charged, and the bank is now scheduled to appear at the Westminster Magistrates\u2019 Court on 14 April 2021.<\/p>\n