Barclays Fined £42 Million Over Poor Handling of Money Laundering Risks

Strategic Insights -

The Financial Conduct Authority (FCA) has imposed a £42 million fine on Barclays PLC for its "poor handling" of money laundering risks. The fine relates to separate failings linked to the bank's relationships with WealthTek and Stunt & Co, a business run by socialite James Stunt. Barclays was found to have failed to adequately manage money laundering risks, particularly in relation to a multimillion-pound money laundering operation linked to Fowler Oldfield. The bank also failed to properly consider the money laundering risks despite receiving information from law enforcement about suspected money laundering.

Key Takeaways:

  • Barclays was fined £39.3 million for failing to adequately manage money laundering risks related to its relationship with Stunt & Co.
  • The bank received £46.8 million from Fowler Oldfield, a "multimillion-pound money laundering operation", but did not gather enough information before starting its relationship with the business.
  • Barclays failed to properly consider the money laundering risks even after receiving information from law enforcement about suspected money laundering.
  • The bank was also fined £3.1 million for failing to check it had enough information to understand the money laundering risk before opening a client money account for WealthTek.
  • Barclays has agreed to make a voluntary payment of £6.3 million to WealthTek's clients who are facing a shortfall.
  • The FCA's enforcement action against Barclays highlights the consequences of poor financial crime controls and the importance of banks taking responsibility for managing money laundering risks.

Statistics:

  • £42 million: the total fine imposed on Barclays PLC by the FCA.
  • £39.3 million: the fine imposed on Barclays Bank for failing to adequately manage money laundering risks related to its relationship with Stunt & Co.
  • £46.8 million: the amount received by Stunt & Co from Fowler Oldfield, a "multimillion-pound money laundering operation".
  • £34 million: the amount deposited by clients into WealthTek's account before the firm collapsed.
  • £6.3 million: the voluntary payment agreed by Barclays to be made to WealthTek's clients who are facing a shortfall.
  • 0.1%: the increase in Barclays shares on Wednesday morning in London.

Sources:

  • Alliance News: "UK watchdog fines Barclays £42 million over money laundering failings".
  • Press Association: "Barclays to make voluntary payment to WealthTek clients facing shortfall".
  • Financial Conduct Authority: "Statement on the fine imposed on Barclays".