Reference Case Number: FOI8711
Freedom of Information: Right to know request:
- Can you tell me how many individuals were sent a written notice of appointment of investigators during the FCA's recent investigation into NatWest for breaches of the Money Laundering Regulations 2007?
- Can you also tell me how many of the individuals under investigation were subsequently sent a warning notice?
- And can you tell me how many of the individuals under investigation were subsequently informed that the FCA had decided to discontinue the investigation without any present intention to take further action?
FCA response:
The response to questions 1 to 3 is none. However, it may be useful to explain in more detail, some of the background to this decision.
The investigation into NatWest was in connection with the firm’s compliance with the Money Laundering Regulations 2007. Criminal offences brought under the Regulations are limited, requiring the FCA to evidence a breach of the Regulations by the body corporate, in this case NatWest.
The FCA would only be entitled to bring ancillary prosecutions against individuals in the very limited circumstances set out at regulation 47, namely where the FCA would be able to evidence, to the criminal standard, the ‘connivance or consent’ of an officer of the company, or any neglect on his or her part. The term “officer” is defined in regulation 47 (9) and includes a director, manager, secretary, chief executive, member of the committee of management, or a person purporting to act in such a capacity. The FCA considered the issue of individual culpability during the relevant period throughout the investigation and whether there were circumstances to suggest that an individual may be guilty of criminal misconduct which would support the appointment of investigators. Having carefully considered the available evidence,
it was concluded that there was insufficient evidence to satisfy the need for circumstances that
suggested an officer of the bank knew, connived in or was individually negligent in the
corporate failures.
Since March 2016 the Senior Managers and Certification Regime (SMCR) has applied to UK
banks. This regime enables the FCA to take regulatory action against a Senior Manager of a
bank where a firm is in breach of a relevant law or requirement within their area of
responsibility, and there is evidence that they did not take reasonable steps to prevent the
breach. As set out in our recent press release and accompanying statement of facts, the
charges laid by the FCA covered the period between 8 November 2012 and 23 June 2016 and
so there was no effective overlap with the SMCR which did not create retrospective liability.
In addition, you may be aware of a separate investigation by West Yorkshire Police into
matters connected to our investigation. This investigation has thus far led to 11 people
pleading guilty to charges relating to the cash deposits. A further 13 individuals are awaiting
trial at Leeds Crown Court on 25 April 2022.