FCA fines Barclays £42m over anti-money laundering failings linked to WealthTek

Bank accused of missing basic due diligence checks as £34m was deposited into WealthTek client account

Sahar Nazir
clock • 2 min read

The Financial Conduct Authority (FCA) has fined Barclays a total of £42m for serious anti-money laundering (AML) failings, including a case involving discretionary fund manager WealthTek, whose principal partner was later charged with fraud and money laundering.

The regulator found that Barclays Bank UK failed to conduct adequate due diligence before opening a client money account for WealthTek, which was not authorised to hold client money. It said "one simple check" of the FCA's Financial Services Register would have flagged the issue. Instead, the bank allowed clients to deposit £34m, leading to "increased risk of misappropriation of client money or money laundering". Barclays has agreed to make a voluntary payment of £6.3m to affected WealthTek clients who have suffered shortfalls, following a request by the FCA. In a separate but rela...

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