The first case relates to WealthTek, where the regulator found that Barclays Bank UK did not collect sufficient information to understand the money laundering risk before opening a client money account for the wealth management firm.
The FCA said a “simple check” and looking at the Financial Services Register would have shown that WealthTek was not permitted by the regulator to hold client money.
Without the right information on the firm or how the account would be used, there was an increased risk of misappropriation of client money or money laundering.
Some £34m was deposited into the account by clients and Barclays has agreed to make a voluntary payment of £6.3m to WealthTek clients who have faced a shortfall in the money they have been able to claim.
Last year, the FCA separately charged WealthTek’s principal partner with multiple criminal offences, including money laundering and fraud.
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In the second case, Barclays Bank has been fined £39.3m for not adequately managing money laundering risks associated with providing banking services to Stunt & Co.
The FCA said Barclays did not gather enough information at the start of the relationship or carry out proper ongoing monitoring. In just over a year, Stunt & Co received £46.8m from Fowler Oldfield, a jewellery store that was used to run a multimillion-pound money laundering operation.
Barclays only reviewed its exposure to Fowler Oldfield through its customers, including Stunt & Co, after NatWest was prosecuted by the FCA because of the bank’s relationship with the company.
The FCA said 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 cooperation with our investigation and through making a voluntary payment to affected consumers at our request.”
Barclays has been engaging and investing in a remediation programme to enhance its anti-money laundering (AML) control framework.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Barclays fined £42m for failing to consider money laundering risks
