Following hot on the heels of NatWest’s record £267 million fine for AML breaches in pretty egregious circumstances involving cash deposits carried in bin-liners, the bank finds itself again in the spotlight over its AML and KYC procedures in a case that considers what obligations it is reasonable to impose on a bank in circumstances where their procedures and systems alerted them (or should have) to a potential fraud by one of its customers.
Simon Fawell
Paul Brehony
Tecnimont Arabia Limited v Natwest, for which judgment is expected imminently, may extend the scope of banks’ liability even where the fraud victim is not their direct customer. This distinguishes it from the more common pathway to claims against banks engaging the “Quincecare duty”.
