The regulator alleges that NatWest failed to adhere to the regulations between 11 November 2011 and 19 October 2016. The regulations the FCA said NatWest failed to meet require the bank 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 FCA alleges that increasingly large cash deposits were made into a UK incorporated customer of NatWest’s accounts. It is alleged that around £365m was paid into the accounts, of which £264m was in cash.
The regulator alleges that NatWest’s systems and controls failed to adequately monitor and scrutinise this activity.
This is the first criminal prosecution under the 2007 money laundering regulations by the FCA and also the first prosecution under the regulations against a bank.
NatWest is scheduled to appear at Westminster Magistrates’ Court on 14 April.
No individuals have been charged as part of these proceedings.