The Financial Conduct Authority has fined Barclays Bank UK PLC and Barclays Bank PLC a combined £42m for failings in financial crime risk management involving WealthTek and Stunt and Co.

Barclays Bank UK PLC was fined £3.1m over due diligence failures when opening a client money account for WealthTek. The bank failed to carry out basic checks, such as verifying permissions on the Financial Services Register, before clients deposited £34m into the account. It has agreed to make a voluntary payment of £6.3m to affected clients.

Separately, Barclays Bank plc was fined £39.3m for failing to manage money laundering risks linked to Stunt and Co, which received £46.8m from the criminal operation Fowler Oldfield. The bank did not properly assess risks, even after police raids and law enforcement alerts.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said the consequences of poor financial crime controls are very real.

“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 co-operation with our investigation and through making a voluntary payment to affected consumers at our request,” she noted.

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