The UK Financial Conduct Authority (FCA) has fined Barclays Bank UK PLC and Barclays Bank PLC a total of £42 million.

The fine stems from two separate instances of failings in Barclays’ financial crime risk management – one relating to WealthTek and one relating to Stunt & Co. Barclays Bank UK PLC will make a voluntary payment to WealthTek’s clients.

In the first case, Barclays Bank UK PLC failed to check 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.

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.

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 with multiple criminal offences, including money laundering and fraud.

In the second case, the FCA 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.

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.