The Financial Conduct Authority (FCA) has started criminal proceedings against NatWest over alleged infringements of money laundering regulations.

The UK watchdog alleges that the company failed to adhere to Money Laundering Regulations 2007 (MLR 2007), which require banks to determine, conduct, and demonstrate risk sensitive due diligence and monitoring of relationships with its customers for the purpose of preventing money laundering.

The criminal proceedings have been triggered by the bank’s alleged handling of funds deposited into accounts operated by a UK incorporated customer of NatWest.

The authority alleges that increasingly large cash deposits were made into the customer’s accounts.

The FCA claims that around £365 million was paid into the customer’s accounts, of which about £264 million was in cash.

It is alleged that the bank’s systems and controls “failed to adequately monitor and scrutinise this activity” over a period of around five years between 11 November 2011 and 19 October 2016.

NatWest will appear at Westminister Magistrates’ Court on 14th April 2021.

The FCA said that this would be its first ever prosecution under the MLR 2007 and the first prosecution under the regulations against a bank.

The organisation made clear that no individuals would be charged as part of the proceedings.

“NatWest Group takes extremely seriously its responsibility to seek to prevent money laundering by third parties and accordingly has made significant, multi-year investments in its financial crime systems and controls," the bank said in a statement.

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