LONDON: Britain’s Financial Conduct Authority (FCA) has imposed a £42 million fine on Barclays Bank for lapses in financial crime risk management.
The penalty addresses separate failures between 2015 and 2023, marking the bank’s third such fine since 2015.
The FCA highlighted two key violations.
First, Barclays failed to verify WealthTek’s regulatory status before opening a client money account.
WealthTek, a wealth manager later shut down by regulators, was not authorised to hold client funds.
The bank missed a “one simple check” that would have flagged the risk.
Second, Barclays inadequately managed money laundering risks tied to Stunt & Co, a gold trader.
This accounted for £39.3 million of the total fine.
FCA enforcement director Therese Chambers stressed that weak controls “allow criminals to launder proceeds of crime and fraudsters to target consumers.”
Barclays acknowledged the findings, stating it has “strengthened its financial crime controls” and fully cooperated with investigations.
A spokesperson reiterated the bank’s commitment to combating financial crime. – AFP
