Barclays Bank has been fined £42 million by the Financial Conduct Authority (FCA) for inadequate handling of money laundering risks in two cases.
The bank failed to conduct proper vetting of two clients: the now-defunct wealth management firm WealthTek and the gold bullion business Stunt & Co. The FCA imposed a £39.3 million fine on Barclays for not gathering sufficient information at the outset of its relationship with Stunt & Co and for inadequate ongoing monitoring. Over a period of just over a year, Stunt & Co received £46.8 million from Fowler Oldfield, a jeweler described by the FCA as operating a “multimillion-pound money laundering operation.”
Despite receiving alerts from law enforcement about suspected money laundering involving Fowler Oldfield and being informed of police raids on both firms, Barclays did not sufficiently evaluate the associated risks. Additionally, the bank opened a client account for WealthTek without checking the Financial Services Register, which indicated that the company was not authorized by the FCA to handle client funds. Clients subsequently deposited £34 million into this account. In response, Barclays has pledged to make a voluntary payment of £6.3 million to clients who experience a shortfall in recoverable funds.
In December 2024, the FCA charged WealthTek’s principal partner with multiple criminal offenses, including money laundering and fraud. Therese Chambers, the FCA’s joint executive director for enforcement and market oversight, emphasized that “the consequences of poor financial crime controls are very real.” She added that banks must take responsibility and act promptly, especially when clear risks are identified.