News that the financial watchdog has started criminal proceedings against NatWest over allegedly failing to comply with money laundering rules ‘highlights that no business or bank is too big to fall victim to fraud’, according to laundering experts SmartSearch.

The Financial Conduct Authority (FCA) claims deposits were made into a UK account totalling £365m between 2011 and 2016 – £264m of which was in cash.

The FCA alleges NatWest’s systems and controls failed to adequately monitor and scrutinise this activity.

It is the first time the FCA has pursued criminal action against a bank, and if convicted the fines NatWest could face are unlimited.

John Dobson, CEO at anti-money laundering experts SmartSearch, said: “What is being alleged is a failing on a massive scale, with astonishing amounts of cash involved, and it highlights that no business or bank is too big to fall victim to fraud.

“I think it also suggests that they should have listened to the advice coming out of the market, but a bank the size of NatWest often believes they don’t need to hear it.

“The Financial Conduct Authority (FCA) has confirmed this is the first criminal prosecution under the money laundering regulations and the first against a bank. If the criminal case is proved, they could face fines of tens of millions of pounds, or even custodial sentences against individuals.

“So, it will be interesting to see how far the FCA is willing to go to make an example of NatWest and bring to bear the full force of its prosecuting authority.

“These allegations are historic to a certain extent, dating back to 2011 to 2016, but the fact is the technology has long been available to verify and monitor individuals and businesses to ensure criminals and fraudsters are stopped before they even get started.

“AML technology is changing and developing all the time, so it’s important for businesses to keep on top of the latest advancements to ensure the best protection is in place.”