NatWest has admitted on three occasions that it failed to properly monitor £ 365 million ($ 496 million) deposited into a customer account.
This is the first time a financial institution in the UK has been prosecuted under anti-money laundering laws.
Bradford-based gold trader Fowler Oldfield reportedly received £ 2 million a day in money bags and laundered £ 365 million through his accounts at NatWest Bank over a five-year period from 2011 to 2016.
We deeply regret that NatWest has failed to adequately monitor and prevent money laundering by one of our customers
Alison Rose, General Manager, NatWest
The Financial Conduct Authority (FCA) said NatWest failed to comply with anti-money laundering legislation requirements in relation to Fowler Oldfield Ltd’s account.
Bankrupt gold dealer James Stunt is one of 13 people charged with money laundering in connection with the jewelers that closed after a police raid in 2016.
NatWest faces a fine of up to £ 240 million.
FCA District Attorney Clare Montgomery QC told Westminster judges that Fowler Oldfield’s projected sales as a NatWest customer were £ 15 million a year.
Still, she has deposited £ 365 million in almost five years.
“Fowler Oldfield’s sales were forecast at £ 15 million a year,” she said.
“It was agreed that the bank would not accept any cash deposits.
“However, it deposited £ 365million, of which around £ 264million was in cash.”
She said Fowler Oldfield deposited up to £ 1.8 million a day at its peak.
NatWest boss Alison Rose apologized for the bank’s failures.
“We deeply regret that NatWest failed to adequately monitor and prevent money laundering by one of our customers between 2012 and 2016,” she said.
“NatWest plays a critical role in detecting and preventing financial crime and we take our responsibility to prevent third party money laundering very seriously.
“In the years since this case, we have invested significant resources and continue to intensify our efforts to combat financial crime effectively.
“We work tirelessly with colleagues, other banks, industry associations, law enforcement agencies, regulators and governments to work together to find solutions to this shared challenge. These partnerships are essential to address the significant and evolving threat posed by financial crime to society. “
NatWest admitted three offenses under the 2007 money laundering regulations.
It will be sentenced by Southwark Crown Court on or before December 8th.
NatWest is 55 percent owned by taxpayers after receiving a bailout of more than £ 45 billion (US $ 61 billion) at the height of the 2008 financial crisis.
Updated: October 7, 2021, 11:11 am
