Barclays Fined £42 Million by FCA Over Financial Crime Control Failures

The UK’s Financial Conduct Authority (FCA) has fined Barclays Bank UK and Barclays Bank a combined £42 million for separate and serious failures in their financial crime risk management, marking the latest in a series of enforcement actions against the bank over weak anti-money laundering (AML) controls.

The fines stem from two unrelated cases involving WealthTek LLP and Stunt & Co, both of which exposed significant lapses in Barclays’ due diligence and monitoring practices, according to the FCA’s Final Notices issued on July 16, 2025.

Failure to Flag WealthTek’s Client Money Activities

Barclays Bank UK PLC was fined £3.1 million (reduced from £4.4 million for early settlement) for failing to assess the money laundering risks posed by WealthTek before opening a client money account in its name. A simple search of the FCA’s Financial Services Register would have revealed that WealthTek was not authorized to hold client money, an oversight that regulators said exposed clients to substantial risk.

Instead, £34 million was deposited into the account, despite Barclays lacking crucial information about WealthTek and how the account would be used. The FCA has since charged John Dance, the principal partner of WealthTek, with multiple criminal offences including fraud and money laundering. His trial is scheduled for September 2027 at Southwark Crown Court.

In response, Barclays has agreed to make a voluntary payment of £6.3 million to WealthTek clients with unrecovered funds. The FCA credited the bank’s full cooperation with the investigation and its swift decision to reimburse affected clients as key reasons for the reduced fine.

Stunt & Co and the Fowler Oldfield Connection

In a separate case, Barclays Bank PLC was fined £39.3 million (down from £56.2 million) for failures in managing AML risks related to its relationship with Stunt & Co, a company that received £46.8 million from Fowler Oldfield, a central player in one of the UK’s largest money laundering operations.

Despite red flags, including police raids on both companies and warnings from law enforcement, Barclays failed to conduct proper due diligence or ongoing monitoring. The bank only reviewed its exposure to Fowler Oldfield-linked clients after learning the FCA was prosecuting NatWest for a similar relationship.

Although James Stunt, Director of Stunt & Co, was later acquitted of money laundering charges, two Fowler Oldfield directors were convicted in March 2025 and sentenced to more than a decade in prison each.

FCA Sends Message to Banks

“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,” said Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA. “Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.”

The FCA noted that Barclays has continued to invest in a large-scale remediation program to improve its AML controls. The regulator also acknowledged the bank’s cooperation as a mitigating factor in both cases.

This latest penalty follows earlier FCA fines against Barclays for AML-related failings in 2022 and 2015, underlining continued regulatory pressure on UK banks to bolster their financial crime controls.

Article Credit: https://www.grcreport.com/post/barclays-fined-ps42-million-by-fca-over-financial-crime-control-failures