The Financial Conduct Authority (FCA) has fined Barclays Bank UK
PLC and Barclays Bank PLC a total of £42 million for separate
instances of failings in its 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.
Therese Chambers, Joint Executive Director of Enforcement and
Market Oversight at the FCA, said:
“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.
“In the first of these cases, Barclays secured a significant
reduction in its fine through its extensive co-operation with our
investigation and through making a voluntary payment to affected
consumers at our request.”
Barclays continues to engage and invest in a significant
remediation programme to enhance its anti-money laundering
control framework.
Financial crime is highlighted by the FCA as a priority for
retail banks in its 2024 supervisory strategy.
The FCA continues to supervise firms to improve standards and
ensure that they have the right systems and controls to manage
financial crime risks.
Notes to editors
-
Final Notice 2025: Barclays
Bank UK plc and Final notice 2025: Barclays
Bank plc.
- In the first case, Barclays Bank UK PLC was
fined £3,093,600, reduced from £4,419,500 following early
settlement.
-
Updates from WealthTek's
administrators.
- A trial has
been scheduled for September 2027 at Southwark
Crown Court in the criminal proceedings brought by the FCA
against John Dance, the former WealthTek LLP principal partner.
- Until recently, the FCA has prioritised our investigation
into Mr Dance. Consideration was subsequently given to what
further regulatory action might be appropriate. The investigation
into Barclays Bank UK PLC was opened in April 2025 and concluded
within three months. Barclays' extensive cooperation contributed
to this expedited outcome. This, together with Barclays'
agreement to make a voluntary payment, led to a significant
reduction in its financial penalty.
- In respect of the second case, Barclays Bank PLC was fined
£39,314,700, reduced from £56,163,900 following early settlement.
- On 4 March 2025 Gregory Frankel and Daniel Rawson, who were
both directors of Fowler Oldfield, were convicted of money laundering
and sentenced to more than 11 years and 10 years
in prison respectively. James Stunt, the Director and owner of
Stunt & Co, was acquitted of money laundering charges in
relation to money received by Stunt & Co from Fowler
Oldfield.
- We previously fined Barclays for failings in financial crime
controls in 2022 and 2015.
