NatWest continued receiving investor funds on behalf of an alleged £200 million Ponzi scheme after police announced they were investigating a suspected fraud at the business. The lender is understood to have banked a total of more than £100 million for 79th Group, a collapsed investment scheme that is being investigated by City of London Police amid fears that investors have lost life savings. In February, police said they were investigating a \"suspected widespread fraud\" at 79th Group and that arrests had been made. Transaction records seen by The Times appear to show that 79th’s main account with NatWest was still receiving funds from individual investors as late as March 17 this year. This newspaper has also established that in November last year, ING, the Dutch multinational banking group, warned a customer that the main NatWest account for 79th Group was \"known to ING as an account used in scam cases\". ING said it had \"alerted all relevant parties involved\" of its suspicions, including NatWest, but declined to say when it had done so. NatWest would not answer questions about the case, including when it froze the main 79th Group account that it banked. 79th has denied wrongdoing. A spokesman said: \"NatWest actively works with industry, law enforcement and regulators to tackle financial crime and fraud, including investment fraud, and has policies and procedures in place designed to comply with all relevant legislation and regulations.\" 79th Group, which was based in Southport, Merseyside, sold \"loan notes\" to investors with a high return via third party brokers. It told investors that the loans were secured against valuable property and mining developments, including a £250 million holiday park in north Wales and a luxury lodges scheme on the shore of Loch Ness. Sir John Whittingdale, a Conservative MP and former minister, has written to the City regulator to warn that many of those affected by the failure of 79th were \"unsophisticated, retired first-time investors [who] … put their savings into a well-planned scam\". He said at least 16 MPs have so far been asked to help constituents with the fallout. Its collapse has echoes of the £237 million London Capital & Finance scandal, which was described by a High Court judge last year as the \"largest Ponzi scheme in British history\". 79th Group, which encompasses about 55 companies, began to fall into insolvency in late April. Insolvency practitioners estimate that it raised about £150 million. More than £200 million is owed to about 3,700 investors based in the UK and overseas. Of this, NatWest received more than £100 million in a \"pooled\" account across thousands of transactions. Large sums of money left the account, including via Revolut, the UK’s largest fintech business. Investors claimed they received purported interest payments linked to the loans via Revolut. Revolut said it \"complies with its regulatory and legal obligations and takes all matters of fraud incredibly seriously\". \"We are unable to comment on this particular case as it is an ongoing police investigation, and we are working with the relevant law enforcement and regulatory authorities.\" Administrators have reported that some of 79th’s banking partners \"took steps to debank\" the business in the run-up to its collapse, including NatWest. Insolvency practitioners from Grant Thornton told investors \"we believe this is a Ponzi\", the term for a fraudulent investment scheme where early investors are paid with money from later investors rather than legitimate business activities. Administrators from Kroll and Quantuma are also engaged on the case. City of London police said in February that four people had been arrested and that \"a large amount of cash, luxury watches and jewellery were found during searches of properties, all of which were seized\". All people arrested have been released on bail and inquiries continue. There have been no charges. The group has denied wrongdoing. Banks have a regulatory duty to counter the risk that they might be used to further financial crime including strict \"know your customer\" and anti-money laundering rules.

NatWest still took funds for ‘Ponzi scheme’ during police inquiry

NatWest continued receiving investor funds for 79th Group, an alleged £200 million Ponzi scheme, despite police investigations into suspected fraud. Transaction records show the bank received over £100 million in a pooled account as late as March 17, 2025, while the company, based in Southport, Merseyside, sold loan notes with high returns to investors claiming property-backed loans. The scheme collapsed in late April, with insolvency practitioners estimating it raised £150 million and owed over £200 million to 3,700 investors. ING previously flagged the account as linked to scam cases and alerted relevant parties, including NatWest. Revolut facilitated purported interest payments and declined to comment on the case. The City of London Police arrested four individuals in February, seizing luxury items, though no charges have been filed. 79th Group denies wrongdoing, and regulators and banks maintain they follow anti-fraud and anti-money laundering protocols.