The drawn out process by which National Australia Bank compensated a chunk of its wealth management customers in 2016 for illegitimate fees has raised the first mention of criminal proceedings at the banking royal commission.Yesterday, Nicole Smith, the chair of one of the trustee subsidiaries of NAB, was explaining the board's preference for ASIC to sanction conduct via a licence condition rather than enforceable undertaking when commissioner Kenneth Hayne chipped in."Any contemplation of a criminal proceeding?""Not at this time, no," Smith said."Ever?" Hayne persisted."I believe in respect of the events that … ASIC are still investigating.""Did you think yourself that taking money to which there was no entitlement raised a question of the criminal law?" Hayne then asked."I didn't."Michael Hodge, counsel assisting, badgered Smith: "In hindsight, as you reflect on the last three years of your term as chairman, do you think this event, that is the wait of ten months or more from the notification of the breach to deciding to compensate, is reflective of a general pattern of the NAB Wealth division delaying in making the right decision by members?""No, I don't," Smith said.