British bank NatWest has pleaded guilty to criminal charges that it failed to prevent money laundering through accounts of a UK incorporated customer between 2012 and 2016.
The Financial Conduct Authority (FCA) has alleged that NatWest failed to identify and curb suspicious activity by the customer.
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As per Bloomberg’s report, NatWest took around £365m in deposits over five years from a gold dealer.
More than two-thirds of the deposit was in cash while the dealer had indicated an annual revenue of just £15m.
“We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016,” NatWest CEO Alison Rose was quoted by the publication as saying.
FCA lawyer Clare Montgomery suggested that the bank could face a fine of £340m for failing to comply with money laundering laws.
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By GlobalDataNotably, this is the first criminal prosecution under the Money Laundering Regulations 2007.
The case has been referred to the Southwark Crown Court for sentencing.
NatWest, which was notified about the probe in 2017, stated that it will add a provision in the third-quarter accounts considering the potential fine being imposed.
In the first six months of 2021, NatWest Bank reported a pre-tax profit of £2.5bn.
The news follows NatWest’s acquisition of RoosterMoney, a London-based fintech that provides a pocket money app for kids.
