FCA fines Barclays £42 million for failures in financial crime controls

The Financial Conduct Authority (FCA) has fined Barclays Bank UK PLC and Barclays Bank PLC a combined £42 million following two separate and serious failings in their financial crime risk management frameworks, underscoring the regulator’s focus on robust anti-money laundering (AML) controls.

The first case centres on Barclays Bank UK PLC’s relationship with WealthTek. Barclays failed to undertake basic due diligence before opening a client money account for the firm, neglecting to verify that WealthTek was authorised by the FCA to hold client money. This failure exposed client funds to significant risk, with £34 million deposited into the account before WealthTek’s principal was later charged with fraud and money laundering offences in December 2024. Barclays has agreed to make a voluntary payment of £6.3 million to WealthTek’s clients who have suffered a shortfall.

In the second case, Barclays Bank PLC was fined £39.3 million for inadequate AML controls in its dealings with Stunt & Co. The bank did not gather sufficient information at the outset of the relationship nor maintain proper ongoing monitoring, despite Stunt & Co receiving £46.8 million from Fowler Oldfield, a major money laundering operation. Barclays failed to act even after receiving warnings from law enforcement and learning that both firms had been raided by police. It only reviewed its exposure after the FCA’s decision to prosecute NatWest over similar issues.

Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, commented:

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.

Barclays received a reduction in its fine for extensive co-operation and for agreeing to voluntary consumer redress. The bank continues to invest in a major remediation programme aimed at strengthening its AML framework.

This action by the FCA reinforces its 2024 supervisory strategy which highlights financial crime as a priority risk for retail banks. The regulator will continue to supervise and challenge firms to ensure they maintain effective systems and controls to detect, prevent and disrupt financial crime.

Read the press release here.