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FCA Fines Nationwide £44 Million Over Covid Furlough Fraud Control Failures

Taxpayers remain about £800,000 out of pocket after HMRC recovered most of the £27.3m routed through personal accounts.

Overview

  • Regulators found shortcomings between October 2016 and July 2021 when Nationwide did not offer business accounts and failed to spot customers using personal accounts for business activity.
  • A single customer received 24 fraudulent furlough payments worth about £27.3m, with roughly £26m deposited in eight days and £26.5m later recovered by HMRC.
  • The FCA said Nationwide took too long to fix flawed systems and weak controls, resulting in missed red flags with serious consequences.
  • Nationwide says it identified the issues through its own reviews, voluntarily reported them, cooperated fully, and has invested since 2021 in a large financial crime transformation programme.
  • The fine was reduced by 30% to £44m because Nationwide agreed to resolve the case, and it follows other 2025 FCA penalties including £42m for Barclays and £21m for Monzo.