Five years to prosecute NatWest and why no individuals prosecuted?
21/10/2021
British lawmakers have asked the Financial Conduct Authority why it took five years to prosecute NatWest (NWG.L) for failing to prevent the laundering of nearly 400 million pounds ($551.28 million), after the lender pled guilty earlier this month.
The bank on Oct. 7 admitted three criminal charges of not adequately monitoring customer accounts between 2012 and 2016, the first time a bank in Britain acknowledged it committed a criminal offence of this kind.
Mel Stride, chair of the cross-party Treasury Select Committee, said in a letter to the FCA published on Wednesday.
- "There are questions which remain to be answered, most notably why it has taken five years after the police raid in 2016 to bring this case to a successful conclusion,"
Stride said the committee is also looking into why no individual NatWest staff were prosecuted.
A spokesperson for the FCA said:
- "We’ve received the letter and will be responding shortly,"
The FCA in the case alleged NatWest had failed to monitor suspect activity by a client that deposited about 365 million pounds in its accounts over five years, of which 264 million was in cash.
NatWest could face a potential penalty of around 340 million pounds under sentencing guidelines, although a judge will set the level of any fine later this year.
The bank reports its third-quarter earnings, in which it could take a provision against the expected fine, on Oct. 29.