Barclays fined £42 million for poor money laundering practices

Barclays has been fined for failing to monitor two clients properly.

Barclays faces £42m fine for inadequate money laundering checks

The UK's Financial Conduct Authority (FCA) has fined Barclays £42 million for inadequate money laundering checks. The majority of the fine, £39.3 million, is related to Stunt & Co, where Barclays did not perform adequate ongoing monitoring despite the firm receiving £46.8 million linked to a money laundering operation. The FCA noted that Barclays reviewed its exposure to Fowler Oldfield only after a significant prosecution announcement against another bank. Additionally, a fine was imposed regarding WealthTek for failing to verify its regulatory status—Barclays could have found that WealthTek was unregistered to hold client money. The FCA highlighted ongoing investigations related to WealthTek’s principal partner, who faces serious charges including fraud. Barclays reduced its fine by cooperating with regulators and compensating affected clients.

This hefty fine underscores the increasing scrutiny banks face regarding compliance with anti-money laundering regulations. The FCA's actions reflect a clear message: failure to monitor clients properly can lead to severe financial consequences. Barclays' previous leniency in this domain highlights a troubling trend within parts of the banking industry where compliance oversight may take a backseat to business interests. As regulatory bodies ramp up enforcement, the expectations for financial institutions will only intensify, suggesting that further penalties could be imminent for others in the sector.

Highlights

The financial sector must adapt quickly to increased regulatory expectations.