NatWest Claws Back Bonuses from Former Staff Over AML Conviction

NatWest, a UK lender, has announced that ten former staff members will have a portion of their bonuses clawed back due to the bank's Anti-Money Laundering (AML) conviction three years ago. The decision to claw back bonuses aims to address the "collective failure" that led to NatWest's conviction for failing to prevent money laundering. This announcement was made in NatWest's annual report released today.

In 2021, NatWest was fined £265 million after pleading guilty to failing to prevent money laundering. Prosecutors revealed details of the egregious money laundering activities, including the couriers transporting hundreds of thousands of pounds in black garbage bags and bank branches with vaults overflowing with cash. The case was described as one of the most audacious examples of money laundering ever heard in court.

As a response to the conviction, NatWest stated that it is taking steps to address the issue, including issuing reduction notices for former employees. These measures aim to ensure that former staff members are treated the same way as those who were still employed by the bank at the time of the penalty. The bank emphasized that it is important for the senior executive committees to drive the firm's culture and set its strategy, hence it is appropriate for colleagues who were in their roles during the failures to be impacted similarly to those affected by the reduction in the 2021 bonus pool.

NatWest, however, did not disclose the identities of the former staff members who would be affected by the clawback of bonuses. The decision reflects the bank's commitment to holding individuals accountable for their roles in the failures that led to the AML conviction.

"We recognise that the senior executive committees drive the firm’s culture and sets its strategy, so it is appropriate that the colleagues in role when the failures occurred are impacted in the same way that the 2021 population were," the bank stated in the report.

The clawback of bonuses from former staff members underscores the seriousness with which NatWest is addressing its regulatory shortcomings and underscores the importance of accountability in the financial industry. This move reflects the bank's commitment to upholding regulatory standards and ensuring compliance with AML regulations.

By fLEXI tEAM