The Financial Conduct Authority's (FCA's) inaugural
use of its criminal money laundering powers under Regulation 45 of
the UK Money Laundering Regulations 2007 (MLR) against NatWest is
viewed by many as a warning shot to firms within scope of the MLR
that the FCA is prepared to utilise its criminal authority in cases
that it considers to be serious, including against major financial
institutions.
The FCA has had the ability to exercise its criminal money
laundering powers since their introduction to the MLR, however, had
not done so until now. This case marks the FCA's first
criminal prosecution for money laundering offences, as well as the
first criminal prosecution against a bank for such offences.
Previous FCA enforcement action has focussed on monetary penalties
in the form of fines for breaches of regulation, therefore, the
criminal action taken by the FCA signals a new regulatory
approach.
