One of the UK’s largest retail and commercial banks, National Westminster Bank (NatWest), is currently in hot water following criminal charges of money laundering made by the Financial Conduct Authority (FCA), a British watchdog organization.
The FCA claims that NatWest overlooked basic systems and controls which resulted in £365m deposited into a UK account over a span of five years. The financial watchdog raised concerns noting that £264m of the funds were allegedly made in cash. The extremely high sums could be the reason the FCA chose to press charges, as it is the first time the organization has brought a criminal case against a bank.
According to the BBC there is speculation that the “investigation centred on a gold trading business called Fowler Oldfield, in Bradford, which was raided in 2016 and saw four men convicted of delivering up to £2m a day in cash”.
The bank will face initial court hearings later this month. In the meantime, NatWest has proactively launched several PR campaigns in an effort to boost its public image. NatWest’s chairman Sir Howard Davies made a statement to its shareholders on April 28 stating that “detecting and preventing financial crime to protect people, families and businesses is a key priority for the group” before citing the bank’s 4,000 employees dedicated to anti-money laundering review.
Although the case has yet to begin and no convictions have been made, the impact of such a prosecution can have tremendous effects for NatWest as businesses and individuals may lose trust in the institution and choose to move their money elsewhere. To avoid similar incidents that can damage your business’s reputation and lead to insurmountable fines, it’s vital to consult with a legal team like Padula Law that specializes in money laundering mitigation.
