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yesterday

FCA Fines Barclays £42 Million for Lax Money Laundering Controls

Barclays agreed a voluntary £6.3 million client payment after FCA findings on its ties to Stunt & Co, with additional shortcomings uncovered at WealthTek.

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The chancellor Rachel Reeves gives her annual speech at the Mansion House Dinner in the City of London

Overview

  • The FCA split the £42 million penalty into £39.3 million for failures around Stunt & Co and £3.1 million for due diligence lapses at WealthTek.
  • Between July 2015 and August 2016, Barclays processed £46.8 million in transfers to Stunt & Co linked to the Fowler Oldfield laundering operation.
  • Barclays opened a client money account for WealthTek in January 2021 without confirming its FCA authorisation, allowing £34 million in client deposits.
  • Early settlement, self-reporting and a £6.3 million voluntary payment to WealthTek clients helped the bank secure a significant fine reduction.
  • Therese Chambers warned that poor financial crime controls allow criminals to launder proceeds and urged banks to act promptly on obvious risks.