The bank entered guilty pleas at Westminster Magistrates’ Court this week to criminal charges brought by the FCA under the Money Laundering Regulations 2007 (MLR 2007). 

NatWest accepts that it failed to comply with regulation 8(1) between 7 November 2013 until 23 June 2016; and regulations 8(3) and 14(1) between 8 November 2012 until 23 June 2016 under the Money Laundering Regulations in relation to the accounts of a UK incorporated customer. 

The regulations require certain firms, including those regulated by the FCA, to ensure they have adequate anti-money laundering systems and controls to prevent money laundering. NatWest accepts it failed to do this. 

The case has now been referred to the Southwark Crown Court for sentencing. The FCA has warned that a large fine is being considered.

This is the first criminal prosecution under the MLR 2007 by the FCA, the FCA says. It is also believed to be the first British bank to be prosecuted in this way.

No individuals are being charged as part of these proceedings, the regulator added.

The failings are believed to be in relation to £400m transferred to the account of Bradford gold dealer and jeweller Fowler Oldfield over a five year period, including a reported £264m in cash.

The FCA said NatWest failed to monitor the transactions.

Fowler Oldfield was closed down following police action in 2016.

The FCA said that the peak Fowler Oldfield deposited nearly £2m a day with NatWest. 

NatWest said in a statement today that it had “co-operated fully” with the FCA since its investigation began and the FCA has confirmed it will not take action against any individual current or former employee of NatWest. 

NatWest said it was not aware of “and is not anticipating” any other authority investigating its conduct in this matter.

The case has been remitted to the Crown Court for sentencing in four to eight weeks. 

NatWest CEO, 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."