The fine covers two risk management failings by two Barclays entities.

The UK’s Financial Conduct Authority has fined Barclays £42 million ($56.2 million) for separate instances of failings in its financial crime risk management – one relating to WealthTek and one relating to Stunt & Co.

The fine is being imposed on two legal entities: Barclays Bank UK Plc and Barclays Bank Plc.

Barclays Bank UK Plc will make a voluntary payment to WealthTek’s clients, the FCA said in a statement yesterday.

“Barclays remains deeply committed to the fight against financial crime and fraud. The FCA’s investigation relating to Stunt & Co was centred around historical money laundering activity and made no findings that the bank had breached money laundering regulations," a spokesperson said in a statement emailed to WealthBriefing. "As acknowledged by the FCA, Barclays undertook an extensive review and self-reported its findings to the FCA. Barclays fully cooperated with both investigations and has further strengthened its financial crime and other control capabilities.” 

WealthTek, an investment bank, was placed into special administration after the FCA intervened regarding suspected criminal activity and operating outside of its regulatory permissions. 

In its statement on the fine, the FCA said that in the first instance, Barclays Bank UK Plc failed to check that it had gathered sufficient information to understand the money laundering risk, before opening a client money account for WealthTek.

“One simple check it could have done was to look at the Financial Services Register before opening the account. Had it done so, it would have seen that WealthTek was not permitted by the FCA to hold client money,” the regulator said. 

“Without the right information about WealthTek and how the account would be used, there was an increased risk of misappropriation of client money or money laundering. Clients went on to deposit £34 million into the account,” it continued. 

The watchdog said Barclays has agreed to make a voluntary payment of £6.3 million to WealthTek’s clients who have a shortfall in the money they have been able to reclaim.  

In December 2024, the FCA separately charged WealthTek’s principal partner, John Dance, with multiple criminal offences, including money laundering and fraud. The offences are alleged to have taken place between 2014 and 2023. 

Second case
In the second case, the FCA said it has fined Barclays Bank Plc £39.3 million for failing to adequately manage money laundering risks associated with providing banking services to Stunt & Co.

“Barclays did not gather enough information at the start of the relationship or carry out proper ongoing monitoring. In the space of just over a year, Stunt & Co received £46.8 million from Fowler Oldfield, a multimillion-pound money laundering operation,” the regulator said. “Barclays failed to properly consider the money laundering risks associated with the firm even after receiving information from law enforcement about suspected money laundering through Fowler Oldfield, and after learning that the police had raided both firms.

“Barclays only conducted a review of its exposure to Fowler Oldfield through its customers, including Stunt & Co, after it learned of the FCA’s decision to prosecute NatWest over their relationship with Fowler Oldfield.  By providing ongoing banking services to Stunt & Co, Barclays facilitated the movement of funds linked to financial crime,” it said. 

Barclays continues to engage and invest in a significant remediation programme to enhance its anti-money laundering control framework, the regulator 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,” Therese Chambers, joint executive director of enforcement and market oversight for the FCA, said.

“In the first of these cases, Barclays secured a significant reduction in its fine through its extensive cooperation with our investigation and through making a voluntary payment to affected consumers at our request,” she said. 

Reductions, trial and background 
In the first case, the FCA said, Barclays Bank UK Plc was fined about £3.093 million, cut from circa £4.419 million following early settlement.

A trial has been scheduled for September 2027 at Southwark Crown Court in the criminal proceedings brought by the FCA against John Dance, the former WealthTek LLP principal partner, the FCA said. 

Until recently, the FCA has prioritised its investigation into Dance. Consideration was subsequently given to what further regulatory action might be appropriate, it said.

“The investigation into Barclays Bank UK Plc was opened in April 2025 and concluded within three months. Barclays' extensive cooperation contributed to this expedited outcome. This, together with Barclays’ agreement to make a voluntary payment, led to a significant reduction in its financial penalty,” it said.

In the second case, Barclays Bank Plc was fined more than £39.3 million, reduced from about £56.2 million, following early settlement.

On 4 March 2025 Gregory Frankel and Daniel Rawson, who were both directors of Fowler Oldfield, were convicted of money laundering and sentenced to more than 11 years and 10 years in prison respectively. James Stunt, the director and owner of Stunt & Co, was acquitted of money laundering charges in relation to money received by Stunt & Co from Fowler Oldfield.

The FCA said it previously fined Barclays for failings in financial crime controls in 2022 and 2015.

Financial performance for Barclays has been positive this year. Shares in the UK-listed lender have risen almost 30 per cent since the start of January.