NatWest (NWG) -2.55%, Britain’s biggest business bank could face hundreds of millions of pounds penalty for not adequately monitoring suspect activity of its clients, failing to prevent the laundering of 400 million pounds.
NatWest, which is in 55% owned by the state after a 45 billion pounds government bailout during the financial crisis, admits it is guilty in preventing three criminal charges between 2012 and 2016, becoming thereby, the first British bank to commit this sort of crime.
The bank heard allegations of inadequately monitoring a client that deposited about 360 million pounds to his accounts, of which 264 million was in cash.
Clare Montgomery, a lawyer that prosecuted against the bank said, that “the facts of the case are complex, the likely sentence is a very large fine.” The bank could face up to 340 million pounds in fines, however, the amount of the penalty will be set by a judge later this year.
The Financial Conduct Authority (FCA) said that it would not proceed against any former or current employees.
"We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers," (Reuters, 2021) said Alison Rose, Chief executive of NatWest in a statement.
A conviction of a bank for criminal conduct can cause it to lose its ability to operate. However, the FCA has no plans to revoke NatWest any of its banking licences.
Deputy head of complex crime at Reeds Solicitor, Neil Williams said that “today's events should have compliance departments reviewing their own procedures to ensure adherence to the regulations.” (Reuters, 2021).
________________________________________________________________________________________________________
*Stock percentage taken on 08/10/2021 at 10:11
*Ridley, Kirsten & Withers, Ian (07. October 2021). Reuters: Britain’s’ NatWest pleads guilty to money laundering failings. Last viewed on 08/10/2021 on https://www.reuters.com/business/finance/natwest-pleads-guilty-money-laundering-offences-2021-10-07/
