Nationwide fined £44mn over ‘failings’ in financial crime controls

The Financial Conduct Authority said that in one case Nationwide failed to detect £27.3mn in fraudulent Covid furlough payments flowing through a customer’s personal account © ReutersNationwide fined £44mn over ‘failings’ in financial crime controls on x (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on facebook (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on linkedin (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on whatsapp (opens in a new window) Save Nationwide fined £44mn over ‘failings’ in financial crime controls on x (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on facebook (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on linkedin (opens in a new window)Nationwide fined £44mn over ‘failings’ in financial crime controls on whatsapp (opens in a new window) Save Georgina Quach in LondonPublishedDecember 12 2025Jump to comments sectionPrint this pageStay informed with free updatesSimply sign up to the UK financial regulation myFT Digest -- delivered directly to your inbox.The UK’s financial conduct regulator has fined Nationwide £44mn for “failings” in its financial crime controls over a period of nearly five years.

The Financial Conduct Authority on Friday said that between October 2016 and July 2021, the building society lacked effective systems for keeping up to date due diligence and risk assessments for all its personal current account customers and for monitoring their transactions. Nationwide was also aware that “some of those customers were using their personal accounts for business activity, in breach of its terms”, the FCA said. Nationwide did not offer business current accounts at this point, the regulator said. In one case, Nationwide failed to detect £27.3mn in fraudulent Covid-19 furlough payments flowing through a customer’s personal account, including £26mn deposited over eight days. “Nationwide failed to get a proper grip of the financial crime risks lurking within its customer base. It took too long to address its flawed systems and weak controls, meaning red flags were missed with serious consequences,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA. The lender would have been fined £63mn, but was granted a discount after “it agreed to resolve these matters”, the FCA said. In a statement, Nationwide said it had identified the issues “through its own reviews, and voluntarily brought them to the attention of the FCA”.“The Society co-operated fully with the FCA investigation, and we are sorry that our controls during the period fell below the high standards we expect,” it added. Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article UK banks Add to myFT UK financial regulation Add to myFT Nationwide Building Society Add to myFT Financial Conduct Authority UK Add to myFT Georgina Quach Add to myFT CommentsThe UK’s financial conduct regulator has fined Nationwide £44mn for “failings” in its financial crime controls over a period of nearly five years.

The Financial Conduct Authority on Friday said that between October 2016 and July 2021, the building society lacked effective systems for keeping up to date due diligence and risk assessments for all its personal current account customers and for monitoring their transactions. Nationwide was also aware that “some of those customers were using their personal accounts for business activity, in breach of its terms”, the FCA said. Nationwide did not offer business current accounts at this point, the regulator said. In one case, Nationwide failed to detect £27.3mn in fraudulent Covid-19 furlough payments flowing through a customer’s personal account, including £26mn deposited over eight days. “Nationwide failed to get a proper grip of the financial crime risks lurking within its customer base. It took too long to address its flawed systems and weak controls, meaning red flags were missed with serious consequences,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA. The lender would have been fined £63mn, but was granted a discount after “it agreed to resolve these matters”, the FCA said. In a statement, Nationwide said it had identified the issues “through its own reviews, and voluntarily brought them to the attention of the FCA”.“The Society co-operated fully with the FCA investigation, and we are sorry that our controls during the period fell below the high standards we expect,” it added.