The Financial Conduct Authority (FCA) has levied a combined £42 million fine on Barclays Bank UK PLC and Barclays Bank PLC for separate failures in their management of financial crime risks. The penalties stem from two distinct cases—one involving WealthTek and the other tied to Stunt & Co. As part of the resolution, Barclays Bank UK PLC will make a voluntary payment to clients affected by the WealthTek incident.

Barclays Bank UK PLC opened a client money account for WealthTek without first confirming it had gathered adequate information to assess potential money laundering risks. A straightforward check of the Financial Services Register would have revealed that WealthTek was not authorised to hold client funds.

This oversight significantly raised the risk of client money being misused or laundered. Ultimately, clients deposited £34 million into the account. To mitigate the impact, Barclays has agreed to voluntarily reimburse £6.3 million to WealthTek clients who experienced financial shortfalls.

In December 2024, the FCA charged WealthTek’s principal partner with multiple criminal offences, including money laundering and fraud.

Barclays Bank PLC was fined £39.3 million for its shortcomings in managing financial crime risks associated with providing banking services to Stunt & Co. The bank failed to gather sufficient information at the outset and neglected proper ongoing monitoring of the account.

Over a span of just over a year, Stunt & Co received £46.8 million from Fowler Oldfield, which was later exposed as a major money laundering operation. Despite receiving warnings from law enforcement and learning of police raids, Barclays delayed a formal review of its exposure to Fowler Oldfield until after the FCA announced charges against NatWest in a related matter.

By continuing to provide banking services to Stunt & Co, Barclays inadvertently enabled the movement of funds tied to criminal activities.

Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, emphasized the consequences of lax financial crime controls:

“Poor controls let criminals launder illicit profits and defraud customers. It’s essential for banks to respond swiftly when clear risks emerge.”

The FCA acknowledged Barclays’ cooperation during the investigation and praised its voluntary compensation to affected consumers.