HomeFinanceNatwest puts £254m aside after guilty plea in money laundering case

Natwest puts £254m aside after guilty plea in money laundering case



Natwest is banking on much lower fine than expected for its involvement in money laundering case


Natwest is banking on a much lower fine than expected for its involvement in a money laundering case. 

The lender pleaded guilty to failures in its anti-money-laundering controls at Westminster Magistrates’ Court this month. 

Banking on it: Natwest is hoping the £340million fine called for by the FCA will be reduced by at least a third because it pleaded guilty

Banking on it: Natwest is hoping the £340million fine called for by the FCA will be reduced by at least a third because it pleaded guilty

The Financial Conduct Authority (FCA) – which brought the case – called for a £340million fine. 

But the bank has set just £254million aside in the third quarter of this year to cover central litigation costs – and this includes provisions for a number of other cases too. 

It is understood that Natwest, formerly known as Royal Bank of Scotland, is hoping the £340million fine called for by the FCA will be reduced by at least a third because it pleaded guilty. 

The ultimate penalty will be decided by a judge in a sentencing hearing on December 13. 

Natwest pleaded guilty to failing to monitor or prevent suspect activity by one of its clients, collapsed Bradford-based gold dealership Fowler Oldfield, between 2012 and 2016. 

The business deposited about £365million in its Natwest accounts over five years – of which £264million was in bags of cash – but the bank’s staff failed to raise any concerns, despite the fact that Fowler Oldfield had said it only expected to make £15million per year. 




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