Barclays Hit with £42M FCA Penalty Over Financial Crime Control Failures

The Financial Conduct Authority (FCA) has imposed a combined fine of £42 million on Barclays Bank UK PLC and Barclays Bank PLC for serious failures in financial crime risk management.

Barclays Bank UK PLC — WealthTek Case 

Barclays Bank UK PLC was fined £3,093,600 for failing to assess the money laundering risks before opening a client money account for WealthTek. The bank neglected to check the Financial Services Register, which lists that WealthTek was not authorised to hold client funds. As a result, £34 million was deposited into the account, exposing clients to an increased risk of money misappropriation or money laundering. 

Barclays has committed a voluntary payment of £6.3 million to cover shortfalls suffered by affected clients. The penalty was reduced from £4,419,500 due to early settlement.

WealthTek’s principal partner was separately charged with fraud and money laundering by the FCA in December 2024.

Barclays Bank PLC — Stunt & Co Case 

Barclays Bank PLC received a £39.3 million fine after failing to adequately manage money laundering risks linked to its relationship with Stunt & Co. Over £46.8 million flowed from Fowler Oldfield, a multimillion-pound money laundering operation, into Stunt & Co’s account in just over a year. The bank did not act on warnings from law enforcement, nor review its exposure to Fowler Oldfield, until the FCA began prosecuting NatWest over its relationship with Fowler Oldfield.  

“By providing banking services to Stunt & Co, Barclays facilitated the movement of funds linked to financial crime,” stated the FCA.

Financial crime is listed as a priority for retail banks in the FCA’s 2024 supervisory strategy. Earlier this month, Monzo Bank Ltd was fined £21M by the FCA for related failures, involving serious deficiencies in the bank’s anti-financial crime systems and controls between October 2018 and August 2020.