Law 360 quotes Richard Burger on Nationwide's £44M anti-money laundering fine
The FCA has fined Nationwide Building Society £44m for inadequate anti-financial crime systems and controls between October 2016 to July 2021.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, said:
"Nationwide failed to get a proper grip of the financial crime risks lurking within its customer base. It took too long to address its flawed systems and weak controls, meaning red flags were missed with serious consequences.
"Building societies and banks have a key role in the fight against financial crime. Firms must remain vigilant in this fight."
Richard Burger, Partner in our Dispute Resolution team, comments for Law 360 that the Nationwide case shows evidence of a more detailed approach to regulation across by the financial regulator.
This is an example of the FCA taking a much more granular approach to AML enforcement investigations. Under this approach, financial institutions should assess customer databases, where different accounts and products have been offered over time. From an AML perspective Institutions should actively monitor how customers use accounts, as the nature of the AML risk may change depending on the type of account initially opened.
Read the full piece in Law 360 here.
