The UK’s Financial Conduct Authority (FCA) has fined Barclays Bank a total of £42 million for significant failings in managing money laundering risks, particularly in connection with Stunt & Co, the company run by socialite James Stunt, and the collapsed wealth management firm WealthTek.
The FCA imposed a £39.3 million fine on Barclays for failing to adequately assess and manage money laundering risks when providing banking services to Stunt & Co. An additional £3.1 million penalty was issued for opening a client money account for WealthTek without gathering sufficient information to understand the associated financial crime risk.
FCA warns of serious consequences
Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, stated:
“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.”
She emphasized the responsibility of banks to respond promptly to financial crime warnings. The FCA acknowledged that Barclays received a significant reduction in its fine due to its extensive cooperation and voluntary compensation to affected customers.
Stunt acquitted, but scrutiny remains
Although James Stunt, a former relative by marriage to Formula One billionaire Bernie Ecclestone, was cleared in March by Leeds Crown Court of involvement in a £200 million laundering scheme, the reputational fallout from the case continues to affect financial institutions linked to his business activities.
Barclays responds and pledges reform
A Barclays spokesperson said the bank remains fully committed to the fight against financial crime.
“The FCA’s investigation relating to Stunt & Co focused on historic activity and made no findings that Barclays breached money laundering regulations. We self-reported and cooperated fully.”
The bank also confirmed it has since enhanced its financial crime and risk controls.
