Nationwide fined £44m by watchdog for financial crime control failings

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Spectral Wre

Nationwide Hit with £44m Fine Over Lackluster Financial Crime Controls

The Financial Conduct Authority (FCA) has slapped Nationwide with a staggering £44 million fine for its woeful failure to prevent financial crime, including a Covid-related scam that cost the UK taxpayer a whopping £800,000. This hefty penalty highlights the regulatory body's assertion that Nationwide's "weak" controls resulted in a serious breach of trust.

The FCA investigation revealed that Nationwide was aware of customers using personal accounts for business purposes, but failed to have the necessary processes in place to monitor potential financial crime risks. This led to a case where a customer exploited this loophole to receive 24 fraudulent Covid furlough payments, raking in £27.3 million over 13 months.

The FCA's enforcement chief, Therese Chambers, slammed Nationwide for its "flawed systems and weak controls" that allowed red flags to be missed with "serious consequences". She stressed that building societies like Nationwide have a crucial role to play in the fight against financial crime, and must remain vigilant in this battle.

Nationwide's CEO, Debbie Crosbie, has faced her own share of controversy in recent times, including a 43% increase in her annual pay to £7 million. This move has been met with criticism from mutual members who label it as "an obscenity" and "hypocritical".

The FCA's fine is the latest blow to Nationwide's already embattled CEO, Debbie Crosbie, who was made a dame in the king's birthday honours this summer and appointed Women in Finance champion by Chancellor Rachel Reeves. The fine also serves as a stark reminder of the importance of robust financial crime controls in preventing such scams from occurring in the future.

In response to the FCA's findings, Nationwide acknowledged that its controls fell short of standards, but maintained that it had invested significantly in improving its economic crime control framework since 2021. However, the £44 million fine is a stark rebuke to these claims, highlighting the need for increased vigilance and accountability in the financial sector.

The FCA's investigation also sheds light on the broader failure of Nationwide's leadership during Joe Garner's tenure from October 2016 to July 2021. The regulator alleged that the building society failed to adequately address weaknesses in its controls in a timely manner, leading to missed red flags and serious consequences.

As the UK continues to grapple with the aftermath of the pandemic, including the £10.9 billion loss to taxpayers caused by fraud and errors, Nationwide's fine serves as a stark reminder of the importance of robust financial crime controls and accountability in the sector.
 
£44m Fine: A Wake-Up Call for Us All 🚨💸

You know, this news hit me like a ton of bricks. £44m is a massive fine, but it's not just about Nationwide failing to prevent financial crime – it's about our collective failure as individuals and institutions to stay vigilant. We all get complacent when things are going smooth, thinking we're above the fray. But trust me, the FCA's warning signs were there, just like they would be in any other scenario.

It's easy to point fingers at Nationwide's CEO, Debbie Crosbie, but the truth is, her pay increase was probably a symptom of the problem, not the root cause. What's more important is that we take responsibility for our own actions and demand more from those who lead us.

We need to be like Nationwide, investing in robust controls and being proactive in identifying potential financial crime risks. It's time to rethink our priorities and focus on building a safer, more transparent financial system – one where everyone benefits, not just the few at the top. 💡
 
I'm literally shook 😱, 44 million quid is insane! I mean I get it, Nationwide knew about customers using personal accounts for business, but come on, they should've done something about it sooner 💸. And Debbie Crosbie's pay increase? Like, what even is that? £7 million is straight-up mental 💁‍♀️. The FCA is right though, weak controls have serious consequences and Nationwide needs to step up their game 🚨. I mean, who else can afford a £7m salary while members are struggling with the scam? It's just not right 🤯. I'm glad they're taking responsibility for it but seriously, how could they be so clueless? 🙄
 
Wow 💸😱 This is crazy, 44 million quid? That's like, whoa! 😲 I'm not surprised they got hit though, I mean, everyone knows you gotta have solid controls to prevent that kind of thing. But £27.3 million for one person? That's just wild 🤯. And Debbie Crosbie's pay is insane 💸. I don't blame the members for being upset.
 
Ugh I'm so furious about this £44m fine on Nationwide 😡!!! Can't believe they got away with being so lax on their financial crime controls for so long 🤯 Their CEO Debbie Crosbie is just getting richer and richer while people are being scammed out of millions 💸 It's not like she's the only one who needs to be held accountable though - the whole leadership team during Joe Garner's time should have been taken down a peg 👊 The FCA is right to crack the whip on Nationwide, it's about time someone took them seriously 😅
 
oh man, this is so not okay 🤯 like nationwide knew their members were using personal accounts for business purposes but didn't do squat about it? that's just lazy 😴 and now they're paying the price with a whopping £44m fine 💸 i feel bad for all the customers who got scammed out of £800k over covid furlough payments 🤕 how could their leadership have been so clueless? and btw, £7m annual pay for debbie crosbie is just obscene 💸
 
😕 Nationwide is getting slammed for its lackluster financial crime controls. 44 million quid is a pretty hefty price tag 🤑. I mean, can't believe their CEO Debbie Crosbie raked it in while this was going on... £7 million annual pay? 🤯 Some ppl think it's an obscenity... I dunno about that, but it does seem kinda rich coming from her 🤑 Anyway, gotta say, FCA is doing its job and making Nationwide take responsibility for its weaknesses 💸. Hopefully, they'll step up their game now and prevent more scams like this one 🤞
 
This £44m fine on Nationwide is pretty telling. I mean, it's one thing to say you've got controls in place but when they're found wanting like this, it raises serious questions about corporate governance. The fact that Debbie Crosbie took a 43% pay hike while customers were being scammed left a bad taste in my mouth 🤦‍♀️. It's also worth noting how the FCA is pushing Nationwide to step up its game on financial crime controls - not just because of the fine, but because it's a matter of public trust and preventing similar scams from happening again 💸. The regulator's got to hold these big players accountable, especially when their 'weak' systems have led to taxpayer losses in the millions.
 
I'm still trying to wrap my head around this huge fine for Nationwide 🤯 I mean, £44 million is crazy! And to think it was all because they didn't have proper systems in place to prevent financial crime... it's just basic human decency to keep an eye on what's going on with your customers' accounts. I'm not sure what's more shocking, the fine itself or that their CEO got a 43% pay rise to £7 million 💸 Meanwhile, Nationwide is blaming it all on flawed systems and weak controls? Come on, Debbie Crosbie, you've been in charge for years and this is your excuse? I feel like they're trying to spin this one 🔄
 
man this is wild £44m fine for nationwide I mean I get it they messed up but £27.3 million covid furlough scams tho that's wild 🤑💸 Nationwide has been trying to improve its controls since 2021 but it seems like they still had some major blind spots... Debbie Crosbie's pay increase was already a hot topic among mutual members and now this fine just puts her in the spotlight again. Can't say I blame the FCA for taking action, gotta keep these financial institutions accountable 🤝
 
I think it's a total overreaction from the FCA 🙄... I mean, £44 million is a lot, but is it really necessary? 🤑 I don't know if Nationwide was just that bad at preventing financial crime or not... maybe they were just unlucky? 😂 And what's with all this fuss about Debbie Crosbie's pay rise? It's not like she's the only one making money in the industry 💸. But on the other hand, shouldn't Nationwide be held accountable for their mistakes? 🤔 I guess it depends on how you look at it... or should I say, depending on your perspective? 🤷‍♀️
 
⚠️🤑 A £44m fine is just too much for one mistake 🤦‍♂️. I mean, it's not like they were trying to scam people, but rather, they failed to catch scammers who used their own customers' accounts against them 😒. It's also quite funny that the CEO got a 43% pay rise after this whole ordeal 💸. Talk about priorities 🙄. Nationwide needs to do better, no doubt, but £44m feels like an overkill for this one mistake 👎
 
just got this news about nationwide being hit with 44m fine over lackluster financial crime controls 🤑👎 it's like they were just chillin' while customers were getting scammed left and right... £27.3 million of covid furlough payments gone down the drain because they didn't do their job properly... can't help but feel sorry for the uk taxpayers who ended up footing that 800k bill 🤦‍♂️
 
I'm telling ya, this Nationwide debacle is like a classic case of regulatory capture 🤑. Debbie Crosbie's pay packet just keeps on growing while her members are left feeling like they're being taken for a ride. It's all about priorities, right? The FCA needs to step in and hold these building societies accountable for their lackluster financial controls. I mean, £44 million is a lot of dosh – it should be making some noise about Nationwide's governance structure instead of just slapping them with a fine. We need more transparency and accountability in the financial sector, not less 🚨. This fine better come with some real reforms or else we'll be seeing more taxpayers getting taken for a ride 💸.
 
🤯 £44 million is bloody daylight robbery if you ask me... I mean, come on, Debbie Crosbie making 7 mil a year while people are getting scammed out of their life savings? That's just sickening 😷 Nationwide's got some serious 'splainin' to do. And what about the leadership during Garner's time? They should be held accountable too! 👊 The FCA needs to crack down on these building societies and make sure they're doing something more than just paying lip service to financial crime control. It's not just about slapping fines, it's about getting results 💪
 
Ugh, another big bank getting hit with a massive fine for its incompetence 🤦‍♂️. I mean, £44m is a lot of dosh, but it's just a drop in the ocean compared to what Nationwide's CEO Debbie Crosbie is raking in 💸. 43% pay increase to £7 million? Unbelievable! Meanwhile, customers are getting scammed out of £800k and Nationwide gets off with a slap on the wrist 🤷‍♀️.

And don't even get me started on the leadership during Joe Garner's tenure... what a joke 👎. The FCA is right to slam Nationwide for its weak controls and lack of accountability, but where was all this scrutiny when it mattered? During the pandemic? Easy questions, Nationwide! 🤔

It's just another example of how the system fails when it comes to protecting consumers from financial abuse 🚫. I'm not surprised that Nationwide is trying to spin this as a result of "improved" controls since 2021... yeah right 🙄. The fine should be a wake-up call for Nationwide and other financial institutions to step up their game! 👊
 
😳 omg i cant even believe whats going on with nationwide right now... like theyre getting fined 44 MILLION DOLLARS for not having proper controls in place to prevent financial crimes 🤦‍♀️ and its just so frustrating because i was a member of their mutual for years but never experienced any issues... i mean i always thought they were pretty decent 💯 but idk maybe im wrong now? 😅 anyway, it just highlights how important it is for big companies like nationwide to have strong financial controls in place especially after what happened with the covid scam 🤝 and i feel bad for joe garner too, hes been out of the job for years so this fine has got to be a huge setback for him financially 💸... i wonder if debbie crosbie will get the heat from her shareholders now that shes getting roasted on social media 📺
 
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I'm really concerned about this huge fine on Nationwide 🤑. They were basically aware of people using personal accounts for business, but failed to do anything about it 😕. It's like they thought the risk was low and didn't want to bother with monitoring 🤷‍♂️.

Here's a simple diagram:
```
+---------------+
| Risk Assessment |
+---------------+
|
|
v
+-------------------------------+
| Lack of Controls |
| (Missed Red Flags) |
+-------------------------------+
|
|
v
+-------------------------------+
| £27.3 Million in Fraud |
| (24 Covid Furlough Payments)|
+-------------------------------+
```
Nationwide's CEO, Debbie Crosbie, has been making some questionable moves lately 🤑, and this fine just adds to the drama 🎭. I think it's time for her to take a hard look at Nationwide's financial crime controls and make some real changes 💪.

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~ Fixing Financial Crime Controls ~
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* Invest in robust systems
* Hire more experts
* Regularly review and update controls

It's not just about the fine, it's about preventing similar scams from happening again 🤞."
 
oh no lol 44m fine is insane what did nationwide even do wrong?? shouldn't they have had better systems in place considering all those fraudulent payments 🤯📉 i'm so over CEOs getting paid that much when their company's being fined like crazy meanwhile, £800k taken from taxpayers and no one bats an eye 🤑😒

nobody talks about the poor people who got scammed by these kind of loopholes Nationwide should really focus on helping its customers instead of just raking in profits 💸👎
 
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