Nationwide Fined £44 Million by the FCA: Inside the UK’s Biggest AML Failings
Description
In this episode, we break down the Financial Conduct Authority’s Final Notice against Nationwide Building Society, which resulted in a £44.1 million fine for serious anti-money laundering (AML) failures. Covering the period from October 2016 to July 2021, the FCA found that Nationwide breached regulatory Principle 3 by failing to adequately organise and control its affairs.
We explore the key weaknesses identified by the regulator, including poor customer risk assessments, widespread failures to refresh customer due diligence, and an ineffective transaction monitoring system. The episode also examines how these shortcomings created significant financial crime risks—most notably in cases where customers used personal accounts for business activity without proper oversight.
One particularly stark example involved the laundering of millions of pounds in fraudulently claimed Coronavirus Job Retention Scheme (JRS) funds, highlighting how systemic control failures can be exploited at scale. We also discuss how Nationwide’s early settlement led to a reduced penalty, bringing the fine down from more than £62 million.
Whether you work in financial services, compliance, or risk management—or simply want to understand how AML failures happen and why regulators are taking a tougher stance—this episode offers clear insights into one of the UK’s most significant recent enforcement actions.
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