The British regulatory authority punishes Barclays for poor use of financial criminal risks

The fine covers two risk management failure from two barclays companies.

The British Financial Conduct Authority has proven Barclays with a fine of 42 million GBP ($ 56.2 million) for separate cases of risk management for financial crime – one in connection with WEALTHTEK and one in connection with Stunt & Co.

The fine is imposed on two legal persons: Barclays Bank UK PLC and Barclays Bank PLC.

The Barclays Bank UK PLC will make a voluntary payment to WEALTHTEK's customers, the FCA said yesterday in an explanation.

“Barclays remains deeply committed to fighting financial crime and fraud. The FCA's investigation in relation to Stunt & Co
prosperity. “As recognized by the FCA, Barclays carried out a comprehensive review and reported their results to the FCA itself. Barclays worked completely with both investigations and further strengthened financial crime and other control skills.”

WEALTHTEK, an investment bank, was brought into the special administration after the FCA intervened in relation to alleged criminal activities and outside of its official authorizations.

In its statement on fine, the FCA said that Barclays Bank UK PLC did not primarily check whether it had collected enough information to understand the risk of money laundering before opening a customer money account for WELTHTEK.

“A simple review that could have done was to look at the financial services register before the account opened.

“Without the right information about WELTHTEK and how the account would be used, there was an increased risk of misunderstanding customer money or money laundering. Customers paid £ 34 million into the account,” continued it.

The watchdog said that Barclays had agreed to make a voluntary payment of £ 6.3 million to WELTHTEK's customers who have a lack of the money they could get back.

In December 2024, the FCA Walthtek's main partner John Dance calculated with several crimes, including money laundering and fraud. The crimes are said to have taken place between 2014 and 2023.

Second case
In the second case, the FCA announced that the Barclays Bank PLC 39.3 million GBP for the failure, money laundering risks in connection with the provision of banking services for Stunt & Co.

“Barclays did not collect enough information at the beginning of the relationship or carried out the proper ongoing surveillance. Within a few more than a year, Stunt & Co received £ 46.8 million from Fowler Oldfield, a multimillion-pound money laundry,” said the supervisory authority. “Barclays did not properly take into account the money laundering risks associated with the law firm, even after they received the law enforcement authorities about alleged money laundering via Fowler Oldfield, and after he had learned that the police had searched both companies.

“Barclays only conducted a review of his fighting of Fowler Oldfield through his customers, including Stunt & Co, after he learned from the decision of the FCA to follow Natwest because of their relationship with Fowler Oldfield. Through the ongoing banking services for stunt & Co.

Barclays are still committed and invests in an important renovation program to improve its anti-money laundry control frame, said the regulatory authority.

“The consequences of poor financial crime controls are very real – they enable criminals to wash the proceeds from their crimes, and they enable fraudsters to cheat consumers. Banks have to take responsibility and act immediately if obvious risks are made aware of,” said Therese Chambers, Joint Executive Director of Enforcement and Market Oversight.

“In the first of these cases, Barclays secured a significant reduction in his fine through his extensive cooperation with our investigation and by voluntary payment to the consumers concerned on request,” she said.

Reductions, experiments and background
In the first case, according to the FCA, the Barclays Bank UK PLC was completed with a fine of around 3.093 million GBP of approx. 4.419 million GBP after an early settlement.

For September 2027, in front of the Southwark Crown Court in the FCA criminal proceedings against John Dance, the former Principal Welltek LLP Principal Partner, is planned for September 2027.

Until recently, the FCA has prioritized its examination for dance. The further regulatory measures were then taken into account, it said.

“The examination of the Barclays Bank UK PLC was opened in April 2025 and completed within three months. Barclays contributed to this accelerated result. Together with Barclays' Agreement on the voluntary payment, this led to a significant reduction in his financial punishment, ”said it.

In the second case, the Barclays Bank PLC was occupied by more than 39.3 million GBP of around 56.2 million GBP after an early agreement.

On March 4, 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. James Stunt, the director and owner of Stunt & Co, was acquitted of money laundering in relation to the money that Stunt & Co received from Fowler Oldfield.

The FCA announced that it previously fined Barclays due to failure to control financial crime in 2022 and 2015.