THE bank Natwest is being prosecuted on money laundering charges, reported to be connected with activities at a prominent Bradford jeweller more than four years ago.

The Financial Conduct Authority has commenced criminal proceedings against NatWest in respect of offences under the Money Laundering Regulations 2007.

It’s the first time the FCA has made a criminal prosecution under these regulations and the first prosecution against a bank.

The FCA is alleging Natwest failed to adhere to the regulations between November 2011 and October 2016.

The case arises from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest, believed to be the Fowler Oldfield jewellery wholesaler, in Hall Lane, Broomfields, Bradford.

The FCA alleges that increasingly large cash deposits were made into the customer’s accounts. It is alleged that around £365 million was paid into the customer’s accounts, of which around £264 million was in cash.

It is alleged that NatWest's systems and controls failed to adequately monitor and scrutinise this activity.

NatWest is scheduled to appear at Westminster Magistrates’ Court on 14 April 2021.

No individuals are being charged as part of these proceedings.

When asked by the Telegraph & Argus, the FCA declined to confirm or deny whether the case was related to a money laundering operation at Fowler Oldfield, which has since been liquidated and still owes £1.7 million to NatWest in overdraft and loans, as well as £10m to other creditors.

A dozen people were arrested at the jewellers in September 2016, three on money laundering charges, which had been in operation in Bradford since 1897, and a number of convictions have been secured against money runners to and from the Bradford premises.

The FCA has said money laundering regulations require a firm to determine, conduct and demonstrate risk sensitive due diligence and ongoing monitoring of its relationships with its customers for the purposes of preventing money laundering.

Previous court cases relating to activities at Fowler Oldfield included accounts of couriers coming and going from the jewellers with holdalls stuffed with thousands of pounds in cash during a five-year period.