£700,000 was paid in garbage bags to Walsall Bank in the case of money laundering rules

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NatWest in Walsall. Image: google

The incident at the Park Street branch was included in a 50-location court case where there were anti-money laundering check breaches by the bank in relation to deposits linked to Bradford-based jeweler Fowler Oldfield.

NatWest has been fined more than £264m after admitting to breaching regulations.

A hearing at Southwark Crown Court, London, heard that about £700,000 was paid to the Walsall City Center branch in one day, and the cash was brought through a shopping center in rubbish bags.

The money was too heavy for the sacks and had to be repacked into burlap sacks, but there was too much to store all of them in the floor-to-ceiling bank vaults.

The plaintiff, Mrs Claire Montgomery QC, said: “Someone was walking in the streets with black bags of garbage.”

Fowler Oldfield deposited £365 million with the bank over five years, including £264 million in cash, some of which was transferred to Walsall’s branch.

The company, which was shut down following a police raid in 2016, was initially rated “high risk” but the rating was downgraded in December 2013.

Prosecutor Claire Montgomery QC said the company alleges it is in the business of buying scrap gold that has been screened and sold to jewelers in ingots or grains.

“Throughout the indictment, NatWest has sought and failed to meet its obligations under the regulations,” said the judge, sentencing the bank, Mrs. Justice Cockrell.

“No intentional breach of the rules or any criminal intent was indicated.”

The bank fined him £264,772,620, ordered him to pay costs of £4,297,466, and issued a forfeiture order of £460,047.

This is the first time that a financial institution has faced criminal prosecution by the Financial Conduct Authority (FCA) under anti-money laundering laws here.

Nat West, part of the Royal Bank of Scotland Group, in October pleaded guilty to three offenses under the Money Laundering Regulations 2007, between November 8, 2012 and June 23, 2016.

In his defence, John Kelsey Fry said, “The Bank recognizes the seriousness of any failure to meet its obligations successfully” and expressed its “deep regret” on behalf of the Board of Directors.

It didn’t escape the bank system, it didn’t escape the radar. It has been identified and subjected to scrutiny. The quality or adequacy of this audit is another matter.”

Alison Rose, CEO of NatWest, said: “NatWest takes its responsibility to prevent and detect financial crime very seriously.

“We deeply regret that we failed to adequately monitor one of our clients between 2012 and 2016 for the purpose of preventing money laundering – we will continue to invest significant resources in the ongoing fight against financial crime.”

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