NatWest’s conviction on AML charges was a failure of culture

Catastrophic anti-money laundering breaches have ledto a guilty plea and a possible £340 million fine for NatWest. No matter what ‘policies and procedures’ are in place, thereis a failure in culture when a client, which is not supposed todeposit cash, can bank £264m in person over a five-year period, says BarryFaudemer.

Barry Faudemer is chief executive of Baker Regulatory Services. He has previously served as the Jersey Financial Services Commission’s director of enforcement and MLRO, and before that was the head of the Police and Customs Joint Financial Crimes Unit. Contact him on barryfaudemer@bakerregulatory.com.

On 7 October 2021 National Westminster Bank plc (NatWest) pleaded guilty to three offences under regulation 45(1) of the Money Laundering Regulations 2007 (MLR 2007) for failure to comply with regulation 8(1) of the MLR 2007 between 7 November 2013 and 23 June 2016 as well as 8(3) and 14(1) of the MLR 2007 between 8 November 2012 and 23 June 2016 in relation to the accounts of Fowler Oldfield, an established gold bullion dealer in Bradford. NatWest are now bracing themselves for what is likely to be an eye-watering fine when they appear before the Crown Court.