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(Alliance News) - NatWest Group PLC on Thursday pleaded guilty to three historical money laundering offences in a landmark win for the City watchdog.
The offences were committed between November 2013 and June 2016 and related to "operational weaknesses" that involved the Edinburgh-based bank failing to properly monitor and scrutinise suspicious customer activity.
The UK Financial Conduct Authority launched criminal proceedings in March against the FTSE 100 lender for alleged failures under money-laundering rules.
A sentencing hearing has been remitted to the Crown Court for sentencing, expected to be in four to eight weeks' time. A provision will be made in NatWest's third quarter financial accounts in anticipation of a potential fine, the bank explained.
"We deeply regret that NatWest failed to adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016. NatWest has a vital part to play in detecting and preventing financial crime and we take extremely seriously our responsibility to prevent money laundering by third parties," commented Chief Executive Alison Rose.
The case marks the first time the FCA has won a criminal prosecution under the money-laundering regulations and the first time the rules have been used to prosecute a bank.
"NatWest entered guilty pleas at Westminster Magistrates' Court to criminal charges brought by the FCA under the Money Laundering Regulations 2007. These regulations require certain firms, including those regulated by the FCA, to ensure they have adequate anti-money laundering systems and controls to prevent money laundering," the FCA said in a statement.
The regulator earlier had alleged that "increasingly large cash deposits" were made into a NatWest customer's account, with around GBP365 million paid in - of which some GBP264 million was in cash.
NatWest shares were down 0.2% to 227.55p in London on Friday morning.
By Will Paige; willpaige@alliancenews.com
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