NatWest pleads guilty in criminal proceedings

Becoming the first British lender to admit to such an offence, the bank has accepted that, between November 2012 and June 2016, it failed to comply with regulations that require certain firms - including those regulated by the FCA - to ensure they have adequate anti-money laundering systems and controls to prevent money laundering.

Pleading guilty to three offences under the 2007 Money Laundering Regulations, the charges are in relation to the accounts of a UK incorporated customer. In a statement to its investors, NatWest said these offences related to operational weaknesses which meant it did not “adequately monitor” the accounts of that customer.

It added that it has “cooperated fully with the FCA” since its investigation, with the regulator confirming it will not take action against any individual that either used to or currently works at NatWest. The bank also said it is not aware of, and is not anticipating, any other authority investigating its conduct in this matter.

The case has now been referred to the Southwark Crown Court for sentencing, which NatWest expects to take place between four to eight weeks’ time. A provision will also be made in NatWest’s Q3 2021 financial accounts in anticipation of a potential fine being imposed at the hearing.

Commenting on the news, NatWest chief executive Alison Rose said: “We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016. NatWest has a vital part to play in detecting and preventing financial crime and we take extremely seriously our responsibility to prevent money laundering by third parties. In the years since this case, we have invested significant resources and continue to enhance our efforts to effectively combat financial crime.

“We work tirelessly with colleagues, other banks, industry bodies, law enforcement, regulators, and governments to help find collaborative solutions to this shared challenge. These partnerships are crucial to counter the significant and evolving threat of financial crime to society.”