Barclays was fined GBP 42 million by the UK Financial Conduct Authority (FCA) for weaknesses in its system for recognizing and managing financial crime risks.

Issues with Stunt & Co

The FCA highlighted that Barclays did not adequately evaluate the risk of money laundering before and during its business relationship with Stunt & Co, a gold bullion company previously connected to the Fowler Oldfield firm. Despite receiving over GBP 46 million from this firm, Barclays continued to offer services even after law enforcement interventions and regulatory warnings.

The delay in responding to red flags related to Fowler Oldfield significantly contributed to the fine. The FCA noted that Barclays only began reassessing its exposure to Stunt & Co once it became aware of pending criminal proceedings against NatWest for similar connections.

Problems with WealthTek

Barclays also failed to perform thorough due diligence when onboarding WealthTek, according to Yahoo Finance. The bank did not verify the company’s authorization status prior to allowing account operations. As a result, large sums were moved through Stunt & Co’s Barclays account without adequate scrutiny, potentially enabling transactions linked to financial crime.

Barclays officials stated that an internal review had been conducted and findings disclosed voluntarily to the regulator. However, while no anti-money laundering law breach was found in connection with Stunt & Co, the bank received a fine for broader issues in its financial crime controls.