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The UK’s Financial Conduct Authority (FCA) has imposed a £42 million penalty on Barclays Bank for serious deficiencies in its anti-money laundering (AML) procedures and compliance risk assessment frameworks related to two high-risk clients: WealthTek LLP and gold trading firm Stunt & Co.
According to the FCA, Barclays failed to conduct adequate due diligence and Know Your Customer (KYC) checks when onboarding Stunt & Co, neglecting to obtain sufficient information at the start of the business relationship and failing to maintain effective ongoing monitoring. Within just over a year, the firm received £46.8 million in payments from Fowler Oldfield — a jeweller identified by law enforcement as part of a large-scale money laundering operation.
Despite being alerted to serious regulatory risks, including law enforcement raids on both Stunt & Co and Fowler Oldfield, Barclays reportedly continued the relationship without implementing stronger compliance controls or enhanced monitoring.
In a separate incident, Barclays opened an account for WealthTek without verifying its status on the FCA’s Financial Services Register. The platform later received £34 million in client deposits, even though WealthTek was not authorized to hold client money — a breach of regulatory compliance requirements. In a voluntary move, Barclays has agreed to compensate affected clients with a £6.3 million payment to cover unrecovered funds.
WealthTek’s principal partner was charged in December 2024 with multiple criminal offences, including fraud and money laundering, further highlighting the systemic compliance gaps in the bank’s internal controls.
Commenting on the enforcement action, Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated:
“The consequences of poor financial crime prevention controls are very real. They create pathways for criminals to launder illicit funds and enable fraudsters to exploit consumers. Financial institutions must uphold their compliance obligations and respond swiftly when clear risks are identified.”
The case underscores the importance of robust compliance management systems, particularly for institutions handling high-risk sectors such as wealth management and precious metals trading. Regulators increasingly expect firms to integrate AML software, adopt advanced fraud detection tools, and demonstrate proactive compliance audits to meet evolving regulatory frameworks.
The Barclays penalty serves as a cautionary tale across the RegTech industry, reinforcing the growing necessity for compliance automation, regulatory reporting software, and enhanced regulatory intelligence capabilities to mitigate financial and reputational risks.
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