Barclays Bank has been fined £42 million by the Financial Conduct Authority for two cases of "poor handling" of money laundering risks.
The bank failed to vet two clients, the now-collapsed wealth management firm WealthTek, and gold bullion business Stunt & Co.
The FCA says it has fined Barclays £39.3 million for failing to gather enough information at the start of the relationship with Stunt & Co, or carry out proper ongoing monitoring. In the space of just over a year, Stunt & Co received £46.8 million from Fowler Oldfield, a jeweller described by the FCA as a "multimillion-pound money laundering operation".
The bank failed to properly consider the 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.
Meanwhile Barclays opened a client account for WealthTek without checking the Financial Services Register, which shows that the company was not permitted by the FCA to hold client money.
Clients went on to deposit £34 million into the account. Barclays has agreed to make a voluntary payment of £6.3 million to 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 with multiple criminal offences, including money laundering and fraud.
Therese Chambers, joint executive director, enforcement and market oversight, FCA, says: "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."