FCA fines Barclays £42m for poor handling of financial crime risks

One of the instances relates to WealthTek and the other to Stunt & Co.

In the first case, Barclays Bank UK PLC failed to check it had gathered sufficient information to understand the money laundering risk before opening a client money account for WealthTek.

Without the right information about WealthTek and how the account would be used, there was an increased risk of misappropriation of client money or money laundering.

Barclays has also agreed to make a voluntary payment of £6.3m to WealthTek’s clients who have a shortfall in the money they have been able to reclaim.

In December 2024, the FCA separately charged WealthTek’s principal partner with multiple criminal offences, including money laundering and fraud.

In the second case, the regulator has fined Barclays Bank PLC £39.3m for failing to adequately manage money laundering risks associated with providing banking services to Stunt & Co.

The FCA said that the bank did not gather enough information at the start of the relationship or carry out proper ongoing monitoring.

In the space of just over a year, Stunt & Co received £46.8m from Fowler Oldfield, a multi-million-pound money laundering operation.

Barclays failed to properly consider the money laundering risks associated with the firm even after receiving information from law enforcement about suspected money laundering through Fowler Oldfield, and after learning that the police had raided both firms.

Barclays only conducted a review of its exposure to Fowler Oldfield through its customers, including Stunt & Co, after it learned of the FCA’s decision to prosecute NatWest over its relationship with Fowler Oldfield.

By providing ongoing banking services to Stunt & Co, Barclays facilitated the movement of funds linked to financial crime.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, commented: “The consequences of poor financial crime controls are very real—they allow criminals to launder the proceeds of their crimes, and they allow fraudsters to defraud consumers.

“Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.

“In the first of these cases, Barclays secured a significant reduction in its fine through its extensive co-operation with our investigation and through making a voluntary payment to affected consumers at our request.”

According to the FCA, Barclays continues to engage and invest in a significant remediation programme to enhance its anti-money-laundering control framework.