Source · Select Committees · Treasury Committee
Recommendation 42
42
Acknowledged
Paragraph: 179
The new assertive approach by the FCA is welcome.
Conclusion
The new assertive approach by the FCA is welcome. The prosecution of NatWest is a major success, and the Committee congratulates the FCA and everyone in the team working on it. The level of the fine should be a deterrent to others. The question is whether this was an isolated case or whether more prosecutions of banks and financial institutions for money laundering will follow. While that would show effective enforcement, it would also signal that money laundering controls are not working as they should be within the institutions prosecuted.
Government response summary AI-generated
The government welcomes recognition of OPBAS's progress and states that OPBAS is focusing on the effectiveness of PBS AML supervision, with plans to improve supervision and work closely with other authorities to make the UK inhospitable for criminals. The FCA is engaging with HM Treasury as part of its review of the AML/CTF supervisory regime.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
179
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The FCA successfully prosecuted NatWest for past anti-money laundering controls failings, representing the first prosecution of a bank under the Money Laundering Regulations 2007. This milestone achievement demonstrates the willingness and capability of the FCA to make use of the full range of powers available to it under the MLRs. The government also welcomes NatWest’s commitment to strengthening its anti-money laundering controls and procedures since the offences in question. The significant fine of £264.8 million, imposed by Southwark Crown Court in December 2021, follows other civil penalties imposed directly by the FCA for failures of banks’ financial crime controls. For example, the FCA fined Standard Chartered Bank £102.2 million in 2019 and Credit Suisse £147.2 million in 2021. Landmark cases such as the NatWest prosecution are just part of the broad range of supervisory and enforcement activity undertaken by the FCA. It continues to target activity at the areas of greatest risk, and as of August 2021 had approximately 46 open financial crime investigations into firms and individuals. 15
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