Barclays faces second financial crime investigation in three years

Barclays is facing its second financial crime investigation in the UK in three years, the bank has revealed in its 2024 annual report. In 2022, the bank was also subject to a Financial Conduct Authority (FCA) probe into its compliance with the Money Laundering Regulations (MLRs). However, this investigation is separate and new, according to people with knowledge of the matter.

Barclays’ report said: “The FCA is conducting a civil enforcement investigation into Barclays Bank UK plc’s and Barclays Bank plc’s compliance with the Money Laundering Regulations 2007 and the FCA’s Principles of Business and Rules relating to anti-money laundering and financial crime systems and controls. The FCA’s investigation focuses primarily on the historical oversight and management of certain customers with heightened risk.”

The regulator fined Barclays £72 million in 2015, for failing to manage financial crime risks related to ultra-high-net-worth (UHNW) politically exposed persons (PEPs).

In 2022, the FCA investigated Barclays Bank UK regarding MLR compliance, as well as the regulators’ principles for businesses relating to transaction monitoring, according to Barclays’ annual report. In 2023, the bank reported the FCA had closed the enforcement investigation, however.

2015 fine

Barclay’s 2015 fine related to failings stemming from a £1.88 billion transaction it had arranged and executed in 2011 and 2012 for several UHNW clients, who were also PEPs, the FCA said in its final notice.

It criticised Barclays for not obtaining the information necessary to comply with financial crime rules because it didn’t want to “inconvenience” its clients. The bank had, it added, gone to “unacceptable lengths to accommodate” clients.

“Barclays agreed to keep details of the transaction strictly confidential, even within the firm, and agreed to indemnify the clients up to £37.7 million in the event that it failed to comply with these confidentiality restrictions,” the FCA said. 

Both Barclays and the FCA declined to comment.