The Financial Conduct Authority (FCA) of the UK issued fines totaling £313 million (€368 million) in the fiscal year 2021–2022—a significant increase of 65 percent from the prior year.
According to the FCA's annual report, during the past year, the watchdog "started prosecutions alleging insider dealing, investment fraud, and money laundering" and levied financial penalties totalling £313 million (€368 million).
The regulator also filed its first successful criminal complaint under the Money Laundering Regulations against a regulated company, accusing NatWest of three offenses for failing to "properly monitor the activity of a commercial customer."
The lender was hit with a £264.8 million (€315 million) fine, and 11 people have been found guilty as a result of a separate police investigation.
The FCA also disclosed that as part of its mission to promote "clean and fair markets," the watchdog currently has 71 investigations into possible insider dealings open.
The successful criminal prosecution of NatWest, according to interim chair Richard Lloyd, highlights the FCA's "renewed commitment to enforcing high standards and stopping criminal behavior."
Additionally, the FCA fined HSBC £63.9 million (€75 million) for having insufficient transaction monitoring controls that prevented the bank from properly identifying signs of financial crime and notifying law enforcement agencies when necessary.
The regulator discovered "serious weaknesses" in HSBC's transaction monitoring systems that had not been promptly addressed.
During the fiscal year 2020–21, the FCA assessed fines totaling £189.8 million (€223 million), including a £96.6 million (€113 million) penalty against Goldman Sachs for risk management errors related to the 1MDB scandal.
By fLEXI tEAM