The United Kingdom’s Financial Behavior Authority (FCA) has imposed a fine on Barclays Bank UK PLC and Barclays Bank PLC in total £ 42 million.
The fine comes from two separate cases of failure in Barclays’s financial crime management – one about Wealthtek and the one associated with Stunt & Co. Barclays Bank UK PLC will volunteer to Wealthtek’s customers.
In the first case, Barclays Bank UK PLC failed to check that it had gathered adequate information to understand the risk of money laundering before opening a Wealthtek customer money account.
A simple check could do was to consider the financial services register before opening the account. He had done so, he would have seen that Wealthtek is not allowed by FCA to keep money from the customer.
Without the correct information about Wealthtek and how the account will be used, there was an increased risk of customer money abuse or money laundering. Customers continued to deposit £ 34 million in the account.
Barclays has agreed to make a voluntary payment of £ 6.3 million to Wealthtek customers who have a deficit in the money they have managed to recover.
In December 2024, the FCA is charged with its main Wealthtek partner with multiple criminal offenses, including money laundering and fraud.
In the latter case, FCA has been fined on Barclays Bank PLC £ 39.3 million in order not to adequately manage the risk of money laundering related to banking services to Stunt & Co.
Barclays did not gather enough information at the beginning of the relationship or conducted proper continued monitoring. In space just over a year, Stunt & Co has received £ 46.8 million from Fowler Oldfield, a multi -million -pound money.
Barclays has failed to properly consider the risks of money laundering illegal activities, even after obtaining information from the law on the suspicion of money laundering through illegal activities through Fowler Oldfield and after learning that the police had raised both operations.
Barclays only carried out a review of its Fowler Oldfield report through its customers, including Stunt & Co, after learning about FCA’s decision to exercise Natwest about their relationship with Fowler Oldfield. Providing ongoing banking services to Stunt & Co, Barclays facilitated the movement of funds associated with financial crime.