NatWest funds linked to Ponzi scheme during police probe

Investors continued to send money to 79th Group through NatWest even after police announced a fraud investigation.

NatWest processed funds for Ponzi scheme amid police inquiry

NatWest processed more than £100 million for 79th Group through its main account, even after City of London Police announced in February that they were investigating a suspected widespread fraud. Transaction records seen by The Times show investor funds arriving as late as March 17 this year. The 79th Group has since collapsed, raising fears that investors may have lost life savings. ING warned in November that the NatWest account for 79th Group was known to ING as an account used in scam cases.

The Times investigation underscores questions about how banks monitor suspicious money flows and the speed with which warnings are acted on. It highlights the tension between warning signals and action, and it points to broader concerns about investor protection in complex financial schemes.

This case exposes gaps in how banks detect and respond to red flags in real time. It suggests that even when warnings exist, money can flow through accounts long enough to cause damage before safeguards tighten. Regulators will likely face renewed pressure to review AML controls and bank monitoring practices, aiming to reduce the chance that funds are funneled into fraudulent schemes. The episode may also influence how the public views the responsibility of lenders in preventing consumer losses.

Highlights

The coming weeks will reveal how quickly safeguards tighten and who bears the cost of stalled protections.