NatWest faces fine over money laundering failings

NatWest bank has pleaded guilty to failing to prevent alleged money laundering of nearly £400m by one customer.

NatWest said "we deeply regret" failing to "adequately monitor and therefore prevent money laundering by one of our customers between 2012 and 2016".

The state-backed bank, formerly Royal Bank of Scotland, is the first British lender to admit such an offence.

Lawyers told a court hearing that NatWest faces a large fine.

The case was brought by the Financial Conduct Authority (FCA) which alleged the bank failed to monitor suspect activity by a client that deposited about £365m in its accounts over five years, of which £264m was in cash.

The criminal action, first announced by the FCA in March, was the first against a bank under a 2007 money laundering law.

NatWest remains 55% taxpayer-owned after receiving a £45bn bailout at the height of the 2008 financial crisis.

An FCA lawyer told the court the "likely sentence is a very large fine".

NatWest chief executive Alison Rose said: "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.

"In the years since this case, we have invested significant resources and continue to enhance our efforts to effectively combat financial crime."