Alison Rose, CEO of NatWest

The FCA alleges that the Royal Bank of Scotland owner failed to adhere to the requirements of regulations 8(1), 8(3) and 14(1) of MLR 2007 between 11 November 2011 and 19 October 2016.

These 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.

The case arises from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest. The FCA alleges that increasingly large cash deposits were made into the customer’s accounts.

It is alleged that around £365 million was paid into the customer’s accounts, of which around £264m was in cash. It is also alleged that NatWest’s systems and controls failed to adequately monitor and scrutinise this activity.

NatWest is scheduled to appear at Westminster Magistrates’ Court on 14 April 2021.

This is the first criminal prosecution under the MLR 2007 by the FCA and the first prosecution under the MLR against a bank. No individuals are being charged as part of these proceedings.

NatWest Group said it “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”.