Natwest faces £300m fine over money laundering

NATWEST is the first high street bank to admit money laundering offences after allowing a small jewellery firm to deposit hundreds of millions of pounds.

The bank, more than half-owned by the taxpayer, faces fines that could top £300million, following a lengthy investigation into its dealings with Fowler Oldfield Ltd, a bullion dealer and jewellery firm which had its headquarters on an industrial estate in West Yorkshire.

The company, which can trace its origins back to a stall in Bradford in 1897 and had been a fixture in the city’s high street for more than a century, was closed in 2016 following a police raid.

Fowler Oldfield had a predicted annual turnover of £15million, but deposited £365 million, including £264 million in cash. At one stage, it was depositing £1.8 million a day.

A total of 15 people with connections to the Bradford business have been charged with laundering. Others have also faced charges, accused of acting as couriers to move cash around. Among those on trial next year at Leeds Crown Court are James Stunt, the bullion dealer formerly married to the Formula 1 heiress Petra Ecclestone.

His Mayfair offices were raided by police in 2016 shortly after the Fowler Oldfield investigation was launched.

Gregory Frankel, great grandson of the founder, is awaiting trial. Mr Frankel, a director of Fowler Oldfield, was also vice-president of Stunt & Co. He and Mr Stunt had a joint venture selling gold and silver bullion internationally.

The investigation into Natwest’s handling of the deposits was led by the Financial Conduct Authority.

The bank admitted three offences under the Money Laundering Regulations, namely that it had failed to adequately monitor a customer’s account between 2012 and 2016. Chief magistrate Paul Goldspring said the figures were too large to be dealt with by Westminster magistrates. Sentencing will be at Southwark Crown Court by Dec 8.