Barclays Bank has been fined a total of £42.4 million by the Financial Conduct Authority (FCA) for failings in managing money laundering risks linked to two separate cases involving WealthTek and Stunt & Co.
The FCA imposed a £39.3 million penalty on Barclays for inadequate controls over money laundering risks related to Stunt & Co, a firm run by socialite James Stunt. Barclays was criticised for failing to gather sufficient information when the business relationship began and for not conducting proper ongoing monitoring. During this period, Stunt & Co received £46.8 million from Fowler Oldfield, described by the FCA as a “multimillion-pound money laundering operation.” Barclays also failed to act despite law enforcement alerts and police raids on both firms. James Stunt was cleared earlier this year of involvement in a £200 million money laundering plot.
Separately, Barclays Bank UK was fined £3.1 million for failing to properly assess money laundering risks before opening a client money account for WealthTek, a now-collapsed wealth management firm. The FCA noted Barclays did not identify that WealthTek was not authorised to hold client funds before £34 million was deposited into the account. Barclays has agreed to make a voluntary payment of £6.3 million to WealthTek’s clients facing financial shortfalls.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said the failures allowed criminals to launder proceeds of crime and fraudsters to defraud consumers, emphasising that banks must act swiftly when risks arise. She also noted Barclays received a significant fine reduction due to its cooperation and voluntary payments to affected consumers.
Barclays responded by stating its strong commitment to fighting financial crime, noting the FCA investigation focused on historical activity and did not find breaches of money laundering regulations. The bank highlighted its extensive review, self-reporting, and cooperation with the FCA, as well as steps taken to strengthen financial crime controls.
