Bank faces money laundering fine after accepting £264m cash deposits
NatWest has pleaded guilty to preventing alleged money laundering of almost £400m by a Bradford business and will be the first bank fined as under the Money Laundering Regulations 2007 (MLR 2007).
The case which was brought against the bank by the Financial Conduct Authority relates to charges of failing to properly monitor the company accounts of gold and precious metal dealer Fowler Oldfield, that received cash deposits totalling £264m – despite an agreement that the bank would not handle cash deposits.
The case found that when Bradford-based Fowler Oldfield became a client of NatWest, the business was predicted to turnover £15m per year, however it actually deposited £365m between November 2011 and October 2016, reportedly depositing £1.8m a day at its height.
The criminal action was the first against a bank under the 2007 law, with NatWest noting it deeply regrets failing to “adequately monitor” and the money laundering.
The bank’s chief executive, Alison Rose, added that it had a “vital part to play in detecting and preventing financial crime”, a role it takes “extremely seriously”.
She continued: “In the years since this case, we have invested significant resources and continue to enhance our efforts to effectively combat financial crime.”
The likely sentence is a large fine, with FCA prosecutor Clare Montgomery noting: “The appropriate harm figure is going to be around £170 million, with a multiplier of 200%.”
Due to the size of the figures involved sentencing could not be dealt with by the magistrate court, and will take place at Southwark Crown Court on or before December 8.
This is the latest action brought about following a raid on Fowler Oldfield in September 2016 by West Yorkshire police, with four people sentenced for their role delivering money to the business.
