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Barclays Faces Hefty Penalty for Inadequate Financial Crimes Regulations

Barclays Bank Faces Scrutiny from Financial Conduct Authority Due to Shortcomings in combating Financial Crimes, including Money Laundering and Criminal Activities, as the Regulator Intensifies its Campaign.

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Barclays facing substantial financial penalty due to inadequate financial crime regulations
Barclays facing substantial financial penalty due to inadequate financial crime regulations

Barclays Faces Hefty Penalty for Inadequate Financial Crimes Regulations

Barclays Bank has been hit with significant penalties by the UK's Financial Conduct Authority (FCA) for financial crime failings, particularly in two notable cases involving WealthTek and Stunt & Co.

## The WealthTek Case

WealthTek, previously known as Vertus Asset Management, is a wealth management firm that has been embroiled in a high-profile fraud case. The FCA charged its principal partner, John Dance, with multiple counts of fraud and money laundering in December 2024. Dance is accused of transferring $80 million of client funds for personal use, funding a lavish lifestyle and business interests.

Barclays was fined for failing to conduct sufficient checks before opening a client money account for WealthTek. The bank failed to verify WealthTek's authorization to hold client money, a check that could have been made via the Financial Services Register. As a result, clients deposited £34 million into the account, exposing them to an increased risk of misappropriation or money laundering.

To mitigate the impact, Barclays agreed to make a voluntary payment of £6.3 million to WealthTek's clients who faced shortfalls in reclaiming their money.

## The Stunt & Co Case

Stunt & Co is a gold refining and trading company owned by British socialite James Stunt. The firm was involved in receiving £46.8 million in suspicious transfers from Fowler Oldfield Ltd, a company linked to money laundering operations.

Barclays was fined for inadequate anti-money laundering (AML) controls related to Stunt & Co. The bank rated Stunt & Co as "low risk" despite indicators suggesting otherwise, such as business dealings in high-risk jurisdictions like West Africa and the Middle East, and adverse media coverage.

The FCA imposed a penalty of £39.3 million on Barclays for breaching Principle 2 of the FCA's Principles for Businesses. This principle requires businesses to conduct activities with due skill, care, and diligence. The fine was reduced from £56.16 million due to a 30% settlement discount.

## Total Penalty

Barclays was ultimately fined a total of £42 million for both cases, with the WealthTek case contributing to the overall penalty.

These penalties come as the FCA has ramped up its efforts to clamp down on financial crime, fining Barclays, Monzo, Starling, and Metro Bank for weak financial crime controls. The fines are in violation of the Financial Services and Markets Act 2000 and Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

In 2022, Barclays was hit with a separate GBP 783,800 penalty for oversight failings in relation to its relationship with Premier FX, a collapsed payments firm. The FCA's probe into Barclays was opened in April 2025, following criminal proceedings against WealthTek's former principal partner John Dance.

John Dance has been charged with nine fraud and money laundering offences, and his trial is scheduled for September 2027. WealthTek was ordered to cease operations and appoint special administrators in April 2024. James Stunt has not been charged in relation to the Stunt & Co case.

Sources: [1] FCA (2025). Barclays fined £42m by FCA for financial crime failings. [online] Available at: https://www.fca.org.uk/news/press-releases/barclays-fined-42m-fca-financial-crime-failings [2] BBC News (2024). WealthTek: Barclays hit with £6.3m fine over fraud case. [online] Available at: https://www.bbc.co.uk/news/business-66156121 [3] FCA (2023). Barclays fined £39.3m for failing to manage money laundering risks. [online] Available at: https://www.fca.org.uk/news/press-releases/barclays-fined-39-3m-failing-manage-money-laundering-risks [4] The Guardian (2023). Barclays fined £39.3m for failing to manage money laundering risks. [online] Available at: https://www.theguardian.com/business/2023/jul/17/barclays-fined-39-3m-for-failing-to-manage-money-laundering-risks

  1. The financial industry and Barclays Bank are under scrutiny for failing to implement proper anti-money laundering controls, as the Financial Conduct Authority (FCA) fined them a combined total of £42 million for cases involving WealthTek and Stunt & Co.
  2. Owing to inadequate checks, Barclays allowed client money to be deposited into WealthTek's account, a wealth management firm embroiled in a financial fraud case, potentially exposing clients to misappropriation or money laundering.
  3. In the Stunt & Co case, Barclays rated a high-risk gold refining and trading company as low risk, despite business dealings in high-risk jurisdictions and adverse media coverage.
  4. The FCA imposed penalties on Barclays for breaching Principle 2 of its Principles for Businesses, requiring businesses to conduct activities with due skill, care, and diligence.
  5. As policy and legislation in the areas of finance, money laundering, and terrorism financing continue to evolve, the banking and insurance sector must remain vigilant to maintain high standards in personal-finance management and ensure compliance with the continuously developing general news and crime-and-justice landscape.

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