Barclays Bank has been fined a total of £42.4 million by the Financial Conduct Authority (FCA) for shortcomings in managing money laundering risks connected to two separate cases involving WealthTek and Stunt & Co.
The FCA imposed a £39.3 million penalty on Barclays for inadequate controls related to Stunt & Co, a firm operated by socialite James Stunt. Barclays was criticized for failing to obtain sufficient information at the start of the business relationship and for not conducting adequate ongoing monitoring. During this period, Stunt & Co received £46.8 million from Fowler Oldfield, described by the FCA as a “multimillion-pound money laundering operation.” Despite law enforcement alerts and police raids on both firms, Barclays failed to take appropriate action. James Stunt was cleared earlier this year of involvement in a £200 million money laundering scheme.
Separately, Barclays Bank UK was fined £3.1 million for failing to properly assess money laundering risks before opening a client money account for WealthTek, a now-collapsed wealth management firm. The FCA noted Barclays did not identify that WealthTek was unauthorized to hold client funds before £34 million was deposited into the account. Barclays has also agreed to make a voluntary payment of £6.3 million to WealthTek’s clients who suffered financial losses.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated that these failures enabled criminals to launder illicit proceeds and allowed fraudsters to deceive consumers. She emphasized the importance of banks acting promptly when risks arise. Chambers also highlighted that Barclays received a significant reduction in its fine due to its cooperation and voluntary payments to affected clients.
In response, Barclays reiterated its strong commitment to combating financial crime. The bank pointed out that the FCA’s investigation focused on historical activities and did not identify breaches of money laundering regulations. Barclays also underscored its extensive internal review, self-reporting, cooperation with the FCA, and measures implemented to strengthen its financial crime controls.
