The UK financial watchdog has fined Barclays Bank £42m over its “poor handling” of financial crime risks linked to Stunt & Co, the firm run by socialite James Stunt, and wealth management company WealthTek.
The Financial Conduct Authority said the fines related to separate failings linked to the two businesses.
It fined Barclays Bank £39.3m for “failing to adequately manage money laundering risks” related to providing banking services to Stunt & Co.
Meanwhile, Barclays Bank UK has been fined £3.1m after it failed to check it had enough information to understand the money laundering risk before opening a client money account for the now-collapsed WealthTek.
Therese Chambers, joint executive director of enforcement and market oversight at the Financial Conduct Authority (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.”
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In March, James Stunt, the former son-in-law of Formula One tycoon Bernie Ecclestone, was cleared at Leeds crown court of any involvement in a £200m money laundering operation. Four other men were convicted.