NatWest Group PLC charged over alleged money laundering negligence

Natwest Group PLC () is to appear in court next month to face criminal charges over alleged breaches of money laundering laws relating to a corporate customer.

The FCA alleges that National Westminster Bank failed to adhere to the requirements of the Money Laundering Regulations 2007 between 11 November 2011 and 19 October 2016.

The regulator added that the case arises from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest.

Around £365mln was allegedly paid into the customer’s accounts, of which around £264mln was in cash. It is claimed the bank’s systems and controls failed to adequately monitor and scrutinise the activity.

It is the first criminal prosecution under the MLR 2007 by the FCA and the first prosecution under the MLR against a bank.

“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,” said the FCA.

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

In a statement, NatWest added it had already disclosed that the FCA started an investigation in July 2017 and has been co-operating to date.

“NatWest Group 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.”

Shares eased 1% to 186.8p.

-adds share price-