Barclays Bank has been fined £42 million by the UK's Financial Conduct Authority for significant lapses in managing financial crime risks associated with two of its clients, Stunt & Co and WealthTek.
The majority of the fine pertains to Barclays' relationship with Stunt & Co, a gold bullion firm linked to Fowler Oldfield, a company implicated in a major money laundering operation. Despite receiving £46.8 million from Fowler Oldfield and facing police raids and regulatory warnings, Barclays failed to adequately scrutinize or monitor Stunt & Co, which is now in liquidation.
Additionally, Barclays was penalized for failing to verify that WealthTek was authorized to hold client money, resulting in fraud and laundering of over £64 million by its principal partner, John Dance.
Barclays stated it had conducted an internal review, self-reported to the FCA, and fully cooperated with the investigation. While the FCA criticized the bank’s controls, it did not conclude that Barclays breached money laundering regulations.
This fine underscores the importance of robust financial crime controls within banking institutions and serves as a reminder of the severe consequences of lapses in due diligence and monitoring.