Latest news with #WealthTek
Yahoo
18 hours ago
- Business
- Yahoo
FCA fines Barclays $56m for financial crime risk management failings
The UK's Financial Conduct Authority (FCA) has imposed a £42m ($56.4m) fine on Barclays for failings in financial crime risk management. The fine covers two cases: Barclays Bank UK's handling of WealthTek and Barclays Bank's dealings with Stunt & Co. In the first case, the FCA alleged that Barclays Bank UK failed to gather adequate information at the outset and did not conduct proper ongoing monitoring before opening a client money account for WealthTek. The FCA noted that a simple check of the Financial Services Register would have revealed WealthTek's lack of authorisation to hold client money. Consequently, clients deposited £34m into the account, posing risks of misappropriation or money laundering. Barclays agreed to a voluntary payment of £6.3m to WealthTek clients who experienced shortfalls in reclaiming their money. In December 2024, the FCA charged WealthTek's principal partner with multiple criminal offences, including money laundering and fraud. In the second case, Barclays Bank was fined £39.3m for insufficient management of money laundering risks linked to Stunt & Co. Stunt & Co received £46.8m from Fowler Oldfield, a money laundering operation, over just one year, the watchdog claimed. The FCA also highlighted that Barclays did not adequately consider money laundering risks even after receiving law enforcement information about Fowler Oldfield's suspected activities. Barclays only reviewed its exposure to Fowler Oldfield after learning of the FCA's decision to prosecute NatWest over their relationship with Fowler Oldfield. Barclays continues to engage in a significant remediation programme to enhance its anti-money laundering controls, the FCA said. FCA joint executive director of enforcement and market oversight Therese Chambers 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 co-operation with our investigation and through making a voluntary payment to affected consumers at our request.' Earlier this month, the FCA fined digital bank Monzo £21m for financial crime failings, citing inadequate controls and violations of FCA directives regarding high-risk customers. "FCA fines Barclays $56m for financial crime risk management failings " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Tribune
3 days ago
- Business
- Daily Tribune
UK fines Barclays bank £42 million for crime risk failings
Kingdom Britain's financial watchdog yesterday said it had fined Barclays bank £42 million ($56 million) for "poor handling of financial crime risks". The Financial Conduct Authority said in a statement that the fine was "for separate instances of failings in its financial crime risk management" between 2015 and 2023. A Barclays spokesperson said the British bank is "deeply committed to the fight against financial crime and fraud", after its third FCA fine for failings in financial crime controls since 2015. They added in a statement that "Barclays fully cooperated with both investigations and has further strengthened its financial crime and other control capabilities". In the first case, Barclays "failed to check it had gathered sufficient information to understand the money laundering risk, before opening a client money account for WealthTek", a wealth manager which the regulator had shut down. The FCA said Barclays needed to carry out only "one simple check" to see that "WealthTek was not permitted by" the regulator to hold client. money.
NDTV
4 days ago
- Business
- NDTV
Barclays Fined $56 Million Over Poor Handling Of Crime Risks
Britain's financial watchdog on Wednesday said it had fined Barclays bank $56 million for "poor handling of financial crime risks". The Financial Conduct Authority said in a statement that the fine was "for separate instances of failings in its financial crime risk management" between 2015 and 2023. A Barclays spokesperson said the British bank is "deeply committed to the fight against financial crime and fraud", after its third FCA fine for failings in financial crime controls since 2015. They added in a statement that "Barclays fully cooperated with both investigations and has further strengthened its financial crime and other control capabilities". In the first case, Barclays "failed to check it had gathered sufficient information to understand the money laundering risk, before opening a client money account for WealthTek", a wealth manager which the regulator had shut down. The FCA said Barclays needed to carry out only "one simple check" to see that "WealthTek was not permitted by" the regulator to hold client money. The bulk of the fine $5.25 million -- was for Barclays "failing to adequately manage money laundering risks associated with providing banking services to Stunt & Co", a trader of gold. FCA enforcement director Therese Chambers said "the consequences of poor financial crime controls... 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," she added in a statement.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Barclays Fined $56 Million for Money-Laundering Failures
Barclays BARC 0.22%increase; green up pointing triangle has been fined roughly $56 million for lapses in dealings with risky customers, including a client tied to one of Britain's biggest money-laundering cases. U.K. regulators fined the bank more than 39 million pounds, equivalent to $52 million, for failing to detect and manage money-laundering risks in its yearslong relationship with Stunt & Co., a gold firm run by socialite James Stunt. It received a separate £3 million fine Wednesday for its dealings with a failed wealth-management firm, WealthTek.
News24
4 days ago
- Business
- News24
UK fines Barclays R1bn for crime risk failings, including with gold trader
Britain's financial watchdog on Wednesday said it had fined Barclays bank £42 million (R1 billion) for "poor handling of financial crime risks". The Financial Conduct Authority said in a statement that the fine was "for separate instances of failings in its financial crime risk management" between 2015 and 2023. A Barclays spokesperson said the British bank is "deeply committed to the fight against financial crime and fraud", after its third FCA fine for failings in financial crime controls since 2015. They added in a statement that "Barclays fully cooperated with both investigations and has further strengthened its financial crime and other control capabilities". In the first case, Barclays "failed to check it had gathered sufficient information to understand the money laundering risk, before opening a client money account for WealthTek", a wealth manager which the regulator had shut down. The FCA said Barclays needed to carry out only "one simple check" to see that "WealthTek was not permitted by" the regulator to hold client money. The bulk of the fine - £39.3 million - was for Barclays "failing to adequately manage money laundering risks associated with providing banking services to Stunt & Co", a trader of gold. FCA enforcement director Therese Chambers said "the consequences of poor financial crime controls... 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," she added in a statement.
