The Financial Conduct Authority (FCA) has fined Nationwide Building Society GBP 44.08m for inadequate anti-financial crime systems and controls affecting its personal current account customers between October 2016 and July 2021. The FCA found Nationwide’s processes for keeping customer due diligence and risk assessments up to date, and for monitoring transactions, were ineffective. Nationwide was also aware that some customers were using personal accounts for business purposes in breach of its terms, but it did not have appropriate processes to manage the associated financial crime risks, as it did not offer business current accounts at the time. In one case cited, Nationwide missed opportunities to identify suspected fraud involving 24 Covid furlough payments totalling GBP 27.3m over 13 months, including GBP 26.01m deposited over eight days; HM Revenue & Customs recovered GBP 26.5m, with around GBP 0.8m still unrecovered. The FCA noted the penalty reflected a 30% settlement discount, with the fine reduced from GBP 62.97m.
Financial Conduct Authority 2025-12-11
UK Financial Conduct Authority fines Nationwide Building Society GBP 44m for anti-financial crime control failings
The Financial Conduct Authority fined Nationwide Building Society GBP 44.08m for inadequate anti-financial crime systems affecting personal current account customers from October 2016 to July 2021. Nationwide failed to maintain effective customer due diligence, risk assessments, and transaction monitoring, and did not manage financial crime risks associated with personal accounts used for business purposes. The fine reflects a 30% settlement discount, reduced from GBP 62.97m.