FCA - Financial Conduct Authority

Nationwide Fined £44 Million for Inadequate Anti-Financial Crime Systems The Financial Conduct Authority (FCA) fined Nationwide Building Society £44 million for inadequate anti-financial crime systems and controls from October 2016 to July 2021. Nationwide's ineffective systems failed to maintain up-to-date due diligence, risk assessments, and transaction monitoring for personal current accounts. It also failed to detect customers using personal accounts for business activities, with one case involving £27.3 million in fraudulent Covid furlough payments. Despite efforts to improve, Nationwide's flaws persisted until a financial crime transformation program began in July 2021. Originally facing a £62.97 million fine, Nationwide received a 30% discount for resolving the issues.