Barclays has been fined GBP 42 million by the UK Financial Conduct Authority (FCA) for shortcomings in its approach to identifying and managing financial crime risks.

Failures in Risk Assessment

The FCA highlighted that these failures involved two former clients, Stunt & Co and WealthTek. The bank failed to properly assess the risk of money laundering before and during its business relationship with Stunt & Co, a gold bullion firm linked to the now-defunct Fowler Oldfield.

Despite receiving over GBP 46 million from this firm, Barclays continued to offer services even after law enforcement interventions and regulatory alerts. The FCA noted that the bank’s delayed response to red flags associated with Fowler Oldfield was a significant contributor to the fine. Barclays only initiated a reassessment of its exposure to the company after becoming aware of pending criminal proceedings against NatWest for similar ties.

Inadequate Due Diligence on WealthTek

The FCA also pointed out that Barclays failed to carry out adequate checks when onboarding WealthTek, and did not verify the company’s authorisation status before allowing it to operate an account.

Stunt & Co, now in liquidation, was permitted to move large sums through its Barclays account without sufficient scrutiny. By continuing to offer services under those conditions, the bank enabled transactions linked to financial crime. Officials from Barclays stated that while the FCA’s investigation into Stunt & Co did not result in any determination that the bank breached anti-money laundering laws, it was penalised for wider failings in its financial crime controls.