Barclays Fined £42m Over Crime Risk Failures

Barclays has been fined £42 million ($56 million) by the UK Financial Conduct Authority (FCA) for major failures in managing financial crime risks involving clients Stunt & Co and WealthTek. The majority of the fine (£39.3 million) is linked to inadequate monitoring of Stunt & Co, which received £46.8 million from Fowler Oldfield, a company implicated in a major money laundering operation. Despite warnings and criminal charges from law enforcement against individuals connected to the case, Barclays delayed sufficient review and oversight. Separately, the bank was fined £3.1 million for opening an account for WealthTek without verifying its authorization to hold client money, putting customer funds at risk. Barclays responded by voluntarily paying £6.3 million to affected WealthTek clients and cooperating with the FCA, which contributed to reduced penalties. The FCA stressed the critical need for banks to act swiftly and responsibly to prevent financial crime.