LONDON (dpa-AFX) - NatWest Group Plc was fined 264.8 million pounds after admitting it failed to prevent money-laundering of about 365 million pounds by one firm.
Justice Cockerill, the sentencing judge at Southwark Crown Court, said '..it must be borne in mind that although in no way complicit in the money laundering which took place, the Bank was functionally vital. Without the Bank - and without the Bank's failures - the money could not be effectively laundered.'
NatWest pleaded guilty at Westminster Magistrates Court on 7 October.
The U.K.'s financial watchdog, the Financial Conduct Authority, alleged that NatWest failed to?properly?monitor?the activity of a commercial customer, Fowler Oldfield, a jewellery business based in Bradford, between 8 November 2012 to 23 June 2016.?
NatWest initially understood it would not handle cash from the Fowler Oldfield business. However,?over the course of the customer relationship about 365 million pounds was deposited with the bank, of which around 264 million pounds was in cash.
According to the FCA, charges Some of the bank's employees, who were responsible for handling the cash deposits, reported their suspicions to bank staff responsible for investigating suspected money laundering, however no appropriate action was ever taken. The 'red flags' that were reported included significant amounts of Scottish bank notes deposited throughout England, deposits of notes carrying a prominent musty smell, and individuals acting suspiciously when depositing cash in NatWest branches.
In addition, the bank's automated transaction monitoring system incorrectly recognised some cash deposits as cheque deposits.
A separate investigation by West Yorkshire Police has led to 11 people pleading guilty to charges relating to the cash deposits and three cash couriers being charged. A further 13 individuals are awaiting trial at Leeds Crown Court on 25 April 2022 in relation to the activities of Fowler Oldfield.
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