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UK fines Nationwide nearly $59 million over financial crime control weaknesses
Nationwide's outdated controls missed money laundering risks for nearly five years, including a £27.3 million Covid furlough fraud, leading to a £44 million fine by the FCA.
- On Friday, the Financial Conduct Authority fined Nationwide Building Society £44m for anti‑financial‑crime failings from October 2016 to July 2021.
- Weak due diligence and outdated controls prompted the FCA's findings as Nationwide Building Society's systems left it unable to manage money‑laundering risks in its personal current account book, and improvement work failed to remedy shortcomings effectively.
- In one case a customer received 24 fraudulent payments totalling £27.3m, with £26.01m deposited over eight days; HM Revenue & Customs recovered £26.5m but about £800,000 remains unrecovered.
- The original fine was £62,969,297 but Nationwide qualified for a 30% discount, reducing it to £44m after launching a large‑scale financial crime transformation programme in July 2021.
- Since 2021 the FCA has imposed 13 fines totaling over 300 million on banks and promoted its Firm Checker, amid research showing around 800,000 people lost money to scams in the 12 months to May 2024.
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Nationwide fined £44 million by watchdog after missing Covid fraud ‘red flags’
The building society had inadequate anti-financial crime systems and controls between October 2016 and July 2021, according to the FCA. Nationwide Building Society has been fined £44 million by the UK’s financial watchdog for failures to handle financial crime risks linked to its customers, including cases of Covid fraud. The building society had inadequate anti-financial crime systems and controls between October 2016 and July 2021, the Financi…
UK fines Nationwide nearly $59 million over financial crime control weaknesses
Britain's financial watchdog has fined lender Nationwide Building Society 44 million pounds ($58.88 million) for failing to properly monitor financial crime risks among its customers between October 2016 and July 2021, it said on Friday.
·United Kingdom
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Total News Sources22
Leaning Left2Leaning Right2Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 22%
C 56%
R 22%
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