FCA fines Barclays £42m for crime risk management failings

The Financial Conduct Authority (FCA) has fined Barclays Bank and Barclays Bank UK £42m for separate instances of financial crime risk management failings.

In the first case, Barclays Bank UK failed to check that it had gathered sufficient information to understand the money laundering risk before opening a client money account for WealthTek.

The regulator said that Barclays Bank UK had not checked the financial services register before opening the account. Had it done so, it would have seen that WealthTek was not permitted by the FCA to hold client money.

The FCA added that without the right information about the firm and how the account would be used, there was an increased risk of misappropriation of client money or money laundering.

Clients went on to deposit £34m into the account. Barclays has since agreed to make a voluntary £6.3m payment to WealthTek’s clients who have a shortfall in the money they have been able to reclaim.

The FCA separately charged WealthTek’s principal partner, John Dance, with multiple criminal offences, including money laundering and fraud. His trial date is scheduled to begin in September 2027.

Barclays Bank UK was fined just over £3.09m, reduced from £4.41m following early settlement.

In the second case, the regulator has fined Barclays Bank £39.3m for failing to adequately manage money laundering risks associated with providing banking services to Stunt & Co.

The FCA said Barclays did not gather enough information at the start of the relationship or carry out proper ongoing monitoring. In the space of just over a year, the firm received £46.6m from the multi-million pound money laundering operation, Fowler Oldfield.

Barclays was found to have not properly conducted the money laundering risks associated with the firm, despite receiving information from law enforcement about suspected money laundering through Fowler Oldfield and after learning that the police had raided both firms.

The bank only conducted a review of its customer exposure to Fowler Oldfield after the FCA prosecuted NatWest over their relationship with the firm. By providing banking services to Stunt & Co, Barclays facilitated the movement of funds linked to financial crime.

Joint executive director of enforcement and market oversight at the FCA, Therese Chambers, said: "The consequences of poor financial crime controls are very real – they allow criminals to launder the proceeds of their crimes, and they allow fraudsters to defraud consumers. Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.

"In the first of these cases, Barclays secured a significant reduction in its fine through its extensive co-operation with our investigation and through making a voluntary payment to affected consumers at our request."



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