Business · Companies · 6 hrs ago
UK watchdog says NatWest should compensate Vashi investors
The UK Financial Ombudsman ruled NatWest should have done more to protect a couple who sent money to jeweller Vashi.
The couple, referred to as Mr and Mrs C, are seeking about £100,000 under a bank scheme for reimbursing some authorised payments linked to scams.
Vashi collapsed in April 2023 with £170 million in debts, and its diamond stock was worth only £114,000 when its safes were examined.
Many investors had believed the diamonds would help repay them if the company failed.
The ombudsman said Vashi’s business model was a falsehood and most likely a deliberate fraud, but neither the couple nor NatWest could have known this at the time.
NatWest should have noticed unusual payments, including two transfers totalling £50,000 made by the couple within 24 hours.
The ruling clears the way for the couple to get their money back, and other investors may also seek reimbursement under the scheme.
The UK Financial Ombudsman Service has ruled that NatWest should have done more to prevent payments to collapsed jeweller Vashi.
The decision means a couple who lost around £100,000 can seek reimbursement from NatWest under the authorised push payment scam scheme.
The ruling could also allow millions of pounds to be returned to other Vashi investors.
Vashi collapsed in April 2023 with debts of £170 million, while its diamond stock was found to be worth just £114,000.
The ombudsman said Vashi’s supposed business model was likely a deliberate fraud.
- Who
- The Financial Ombudsman Service ruled on a claim by a couple, referred to as Mr and Mrs C, against NatWest.
- What
- The ombudsman said NatWest should have done more to prevent payments to Vashi, potentially allowing the couple to receive compensation.
- When
- The ruling was reported on 14 October 2026.
- Where
- The UK.
- Why
- The ombudsman said NatWest should have looked out for unusual transactions and other signs that its customer might be at risk of fraud.
This story does not have two clearly opposing sides.
Vashi collapsed with debts of £170 million.
The Financial Ombudsman Service initially rejected a group of investors’ claim that banks were liable for their losses under the APP scheme.
The ombudsman overturned its decision on the claim by Mr and Mrs C against NatWest.
- Vashi debts
- £170 million
- Diamond stock found in safes
- £114,000
- Couple's claim
- Around £100,000
- Payments highlighted in ruling
- Two payments totalling £50,000 within 24 hours
- Collapse
- April 2023
What people are saying
I think NatWest ought to have been on the look-out for out-of-character and unusual transactions and other indications that its customer might be at risk of financial harm from fraud.
This is what we've been fighting for,
This is a significant outcome for investors who were wrongly denied reimbursement,