Barclays (LON:BARC) has been hit with a £42 million fine by the UK’s financial watchdog for serious lapses in money laundering controls linked to two scandal-hit businesses.
The Financial Conduct Authority said it fined Barclays Bank £39.3 million for “failing to adequately manage money laundering risks” while providing services to Stunt & Co, the firm run by socialite James Stunt.
The bank failed to collect sufficient information on the business and neglected ongoing monitoring, despite law enforcement warnings.
During the relationship, Stunt & Co received £46.8 million from Fowler Oldfield, a company at the centre of a major money laundering operation. The FCA said Barclays ignored clear red flags, even after police raided both firms.
Separately, Barclays Bank UK was fined £3.1 million for failings connected to WealthTek, a now-collapsed wealth manager. The bank opened a client money account without adequate checks and failed to spot that WealthTek was not authorised to hold client funds, allowing £34 million in deposits.
Barclays has agreed to make a £6.3 million voluntary payment to affected WealthTek clients.
FCA enforcement chief Therese Chambers said the cases showed the “very real” impact of poor controls, adding: “Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.”
Barclays received a reduced fine for cooperating with the investigation and making voluntary payments to affected consumers.