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Barclays fined £42m for poor money laundering checks | Barclays fined £42m for poor money laundering checks |
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Barclays Bank has been fined £42m by the UK's financial watchdog for failures in its money laundering risk management. | Barclays Bank has been fined £42m by the UK's financial watchdog for failures in its money laundering risk management. |
The Financial Conduct Authority (FCA) said Barclays had not properly vetted two of its clients, Stunt & Co and WealthTek. | The Financial Conduct Authority (FCA) said Barclays had not properly vetted two of its clients, Stunt & Co and WealthTek. |
The FCA said Barclays "facilitated the movement of funds linked to financial crime" by providing services to Stunt & Co and said there was "an increased risk" of client money misappropriation or money laundering from its failure to check WealthTek. | The FCA said Barclays "facilitated the movement of funds linked to financial crime" by providing services to Stunt & Co and said there was "an increased risk" of client money misappropriation or money laundering from its failure to check WealthTek. |
Barclays said it fully co-operated with both investigations and has "further strengthened its financial crime and other control capabilities". | Barclays said it fully co-operated with both investigations and has "further strengthened its financial crime and other control capabilities". |
The bulk of the fine, £39.3m, was in relation to Stunt & Co. | |
The FCA said Barclays failed to carry out "proper ongoing monitoring" of its account with Stunt & Co. | |
"In the space of just over a year, Stunt & Co received £46.8 million from Fowler Oldfield, a multimillion-pound money laundering operation," the regulator said, | |
It added that Barclays only conducted a review of its exposure to Fowler Oldfield after it learned of the FCA's decision to prosecute NatWest over their relationship with Fowler Oldfield. | |
The rest of the fine was for WealthTek. The FCA said "one simple check" Barclays could have done on the firm was to look at the Financial Services Register. | |
"Had it done so, it would have seen that WealthTek was not permitted by the FCA to hold client money," the FCA said. | "Had it done so, it would have seen that WealthTek was not permitted by the FCA to hold client money," the FCA said. |
The FCA said that in December 2024 it had charged John Dance, one of WealthTek's principal partners, with multiple criminal offences, including money laundering and fraud. | |
His trial is scheduled for September 2027 at Southwark Crown Court. | |
Therese Chambers, from the FCA's enforcement division, said Barclays got a significant reduction in its fine through its "extensive co-operation" in the investigation of WealthTek and making a voluntary payment to affected clients, although further details were not given. | Therese Chambers, from the FCA's enforcement division, said Barclays got a significant reduction in its fine through its "extensive co-operation" in the investigation of WealthTek and making a voluntary payment to affected clients, although further details were not given. |
Barclays said it "remains deeply committed to the fight against financial crime and fraud." | Barclays said it "remains deeply committed to the fight against financial crime and fraud." |
"The FCA's investigation relating to Stunt & Co was centred around historical money laundering activity and made no findings that the bank had breached money laundering regulations," it said in a statement. | "The FCA's investigation relating to Stunt & Co was centred around historical money laundering activity and made no findings that the bank had breached money laundering regulations," it said in a statement. |
"As acknowledged by the FCA, Barclays undertook an extensive review and self-reported its findings to the FCA", it added. | "As acknowledged by the FCA, Barclays undertook an extensive review and self-reported its findings to the FCA", it added. |
The FCA has fined Barclays for failings in financial crime controls twice before. | |
In 2022, it fined the bank £783,800 for oversight failings in its relationship with collapsed payments firm Premier FX, which the FCA said presented "particularly high risks of financial crime and fraud". | |
In 2015, Barclays was fined £72m for failing to minimise the risks of financial crime in relation to some of its ultra-wealthy clients, some of whom had high political profiles. |