Barclays Faces Financial Conduct Authority's Wrath

The Financial Conduct Authority (FCA) has imposed a staggering £42 million fine on Barclays Bank UK PLC and Barclays Bank PLC. This penalty comes as a result of their significant shortcomings in managing financial crime risks associated with WealthTek and Stunt & Co.

Details of the Failures

Barclays Bank UK PLC was found to have opened a client money account for WealthTek without conducting adequate checks on the money laundering risks. Similarly, Barclays Bank PLC failed to effectively manage the money laundering risks while offering banking services to Stunt & Co.

Regulatory Response

"The implications of inadequate financial crime controls are profound," stated Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA. "They not only facilitate the laundering of criminal proceeds but also enable fraudsters to exploit consumers. It's imperative for banks to act swiftly, especially when potential risks are highlighted."