- The fine is related to Barclays’ relationship with Stunt & Co, a firm linked to a major money laundering investigation.
- In a separate case, Barclays allegedly opened an account for WealthTek without basic regulatory checks.
Britain’s financial regulator fined Barclays £42 million ($56 million) for reportedly failing to properly assess the money laundering risks posed by two of its clients, including a company linked to one of the country’s largest financial crime investigations, Reuters reported.
The Financial Conduct Authority (FCA) said that the bank had provided services to Stunt & Co and WealthTek without conducting adequate due diligence or ongoing monitoring, despite warning signs and regulatory alerts.
The bulk of the fine relates to Barclays’ relationship with Stunt & Co, a gold bullion firm associated with Fowler Oldfield, which was the focus of a major UK money laundering probe.
According to the FCA, Barclays failed to collect enough information when onboarding the client and did not monitor the account properly, even after law enforcement conducted raids and regulators issued warnings.
Stunt & Co reportedly received nearly £47 million from Fowler Oldfield, yet Barclays continued its business relationship. The FCA said the bank only began reviewing its exposure after learning of enforcement action against NatWest for similar links to Fowler Oldfield.
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WealthTek Oversight Adds To Failings
In a separate instance, the FCA said Barclays failed to perform basic regulatory checks before opening an account for WealthTek, a now-defunct wealth manager. The bank did not consult the Financial Services Register, which would have revealed that the firm was not authorized to hold client funds.
Barclays said it conducted a comprehensive internal review and reported its findings to the FCA. A spokesperson quoted by Reuters said the bank fully cooperated with the investigation and noted that while the FCA identified weaknesses in financial crime controls, it made “no findings that the bank had breached money laundering regulations” in the Stunt & Co case.
