National Westminster Bank has today been fined £264.8m at Southwark Crown Court for money laundering in one of the biggest cases of its kind in the UK. 

The fine relates to a £400m criminally-based money laundering ring centred on Bradford gold dealer and jeweller Fowler Oldfield.

Huge sums of cash, up to £2m a day, were laundered via Fowler Oldfield and deposited at NatWest branches. 

NatWest accepted that the offences related to “operational weaknesses” between 2012 and 2016. The part-government owned bank failed to adequately monitor the accounts of a UK incorporated customer.

Up to 50 NatWest branches across the country, including several in London and Yorkshire, were used to deposit the cash with couriers often arriving at bank branches with bin bags stuffed full of cash. 

One branch was believed to have received up to £700,000 in cash in a single day.

NatWest's Southall branch received £42m in cash over 15 months between January 2015 to March 2016 but no suspicious transaction report was made.

The bank was fined for three offences under regulation 45(1) of the Money Laundering Regulations 2007. The bank admitted the offences on 7 October.

The fine, which includes a 33% discount for the bank’s early guilty plea, will be met from existing provisions, the bank said, with a small additional provision to be taken in NatWest’s Q4 2021 financial accounts.

Provided no further evidence comes to light, the FCA is unlikely to take action against any individual current or former employee of NatWest over the case. NatWest said it is not aware of, and is not anticipating, any other authority investigating its conduct connected to the case.

NatWest CEO Alison Rose, said:  “NatWest takes its responsibility to prevent and detect financial crime extremely seriously. We deeply regret that we failed to adequately monitor one of our customers between 2012 and 2016 for the purpose of preventing money laundering. While today’s hearing brings an end to this case, we will continue to invest significant resources in the ongoing fight against financial crime.”

This is the first criminal prosecution under the MLR 2007 by the FCA. It is also believed to be the first British bank to be prosecuted in this way.

The failings are in relation to £400m transferred to the account of Bradford gold dealer and jeweller Fowler Oldfield over a five year period, including a reported £264m in cash.

The FCA said NatWest failed to monitor the transactions. 

Fowler Oldfield was closed down following a police raid in 2016.