Compliance
UK Regulator Fines Barclays For Poor Handling Of Financial Crime Risks
.jpg)
The fine covers two risk management failings by two Barclays entities.
The UK’s Financial
Conduct Authority has fined Barclays £42 million ($56.2
million) for separate instances of failings in its financial
crime risk management – one relating to WealthTek and one
relating to Stunt & Co.
The fine is being imposed on two legal entities: Barclays Bank UK
Plc and Barclays Bank Plc.
Barclays Bank UK Plc will make a voluntary payment to WealthTek’s
clients, the FCA said in a statement yesterday.
“Barclays remains deeply committed to the fight against financial
crime and fraud. The FCA’s investigation relating to Stunt & Co
was centred around historical money laundering activity and made
no findings that the bank had breached money laundering
regulations," a spokesperson said in a statement emailed to
WealthBriefing. "As acknowledged by the FCA,
Barclays undertook an extensive review and self-reported its
findings to the FCA. Barclays fully cooperated with both
investigations and has further strengthened its financial crime
and other control capabilities.”
WealthTek, an investment bank, was placed into special
administration after the FCA intervened regarding suspected
criminal activity and operating outside of its regulatory
permissions.
In its statement on the fine, the FCA said that in the first
instance, Barclays Bank UK Plc failed to check that it had
gathered sufficient information to understand the money
laundering risk, before opening a client money account for
WealthTek.
“One simple check it could have done was to look at the Financial
Services Register before opening the account. Had it done so, it
would have seen that WealthTek was not permitted by the FCA to
hold client money,” the regulator said.
“Without the right information about WealthTek and how the
account would be used, there was an increased risk of
misappropriation of client money or money laundering. Clients
went on to deposit £34 million into the account,” it
continued.
The watchdog said Barclays has agreed to make a voluntary payment
of £6.3 million to WealthTek’s clients who have a shortfall in
the money they have been able to reclaim.
In December 2024, the FCA separately charged WealthTek’s
principal partner, John Dance, with multiple criminal offences,
including money laundering and fraud. The offences are alleged to
have taken place between 2014 and 2023.
Second case
In the second case, the FCA said it has fined Barclays Bank Plc
£39.3 million for failing to adequately manage money laundering
risks associated with providing banking services to Stunt &
Co.
“Barclays did not gather enough information at the start of the
relationship or carry out proper ongoing monitoring. In the space
of just over a year, Stunt & Co received £46.8 million from
Fowler Oldfield, a multimillion-pound money laundering
operation,” the regulator said. “Barclays failed to properly
consider the money laundering risks associated with the firm even
after receiving information from law enforcement about suspected
money laundering through Fowler Oldfield, and after learning that
the police had raided both firms.
“Barclays only conducted a review of its exposure to Fowler
Oldfield through its customers, including Stunt & Co, after it
learned of the FCA’s decision to prosecute NatWest over their
relationship with Fowler Oldfield. By providing ongoing
banking services to Stunt & Co, Barclays facilitated the movement
of funds linked to financial crime,” it said.
Barclays continues to engage and invest in a significant
remediation programme to enhance its anti-money laundering
control framework, the regulator said.
“The consequences of poor financial crime controls are very real
– they allow criminals to launder the proceeds of their crimes,
and they allow fraudsters to defraud consumers. Banks need to
take responsibility and act promptly, particularly when obvious
risks are brought to their attention,” Therese Chambers, joint
executive director of enforcement and market oversight for the
FCA, said.
“In the first of these cases, Barclays secured a significant
reduction in its fine through its extensive cooperation with our
investigation and through making a voluntary payment to affected
consumers at our request,” she said.
Reductions, trial and background
In the first case, the FCA said, Barclays Bank UK Plc was fined
about £3.093 million, cut from circa £4.419 million following
early settlement.
A trial has been scheduled for September 2027 at Southwark Crown
Court in the criminal proceedings brought by the FCA against John
Dance, the former WealthTek LLP principal partner, the FCA
said.
Until recently, the FCA has prioritised its investigation into
Dance. Consideration was subsequently given to what further
regulatory action might be appropriate, it said.
“The investigation into Barclays Bank UK Plc was opened in April
2025 and concluded within three months. Barclays' extensive
cooperation contributed to this expedited outcome. This, together
with Barclays’ agreement to make a voluntary payment, led to a
significant reduction in its financial penalty,” it said.
In the second case, Barclays Bank Plc was fined more than £39.3
million, reduced from about £56.2 million, following early
settlement.
On 4 March 2025 Gregory Frankel and Daniel Rawson, who were both
directors of Fowler Oldfield, were convicted of money laundering
and sentenced to more than 11 years and 10 years in prison
respectively. James Stunt, the director and owner of Stunt & Co,
was acquitted of money laundering charges in relation to money
received by Stunt & Co from Fowler Oldfield.
The FCA said it previously fined Barclays for failings in
financial crime controls in 2022 and 2015.
Financial performance for Barclays has been positive this year. Shares in the UK-listed lender have risen almost 30 per cent since the start of January.