BREAKING: UK fines Commercial Bank for Anti-Money Laundering Failures

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Barclays Bank UK PLC and Barclays Bank PLC have been fined a combined £42 million by the UK’s Financial Conduct Authority (FCA) for serious lapses in anti-money laundering controls related to their dealings with WealthTek and Stunt & Co. The FCA’s investigation revealed significant failures in Barclays’ anti-money laundering controls, which increased the risk of financial crime.

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The FCA found that Barclays Bank UK PLC failed to collect adequate information to assess money laundering risks before opening a client money account for WealthTek. Specifically, the bank did not check the Financial Services Register, which would have revealed that WealthTek lacked authorization to hold client funds. This oversight led to £34 million being deposited into the account, heightening the risk of misappropriation.

The FCA’s investigation highlighted the importance of robust anti-money laundering controls in preventing financial crime. The regulator’s findings emphasized the need for banks to conduct thorough risk assessments and verify the authorization status of clients before opening accounts.

The £42 million fine imposed on Barclays Bank serves as a reminder of the severe consequences of non-compliance with anti-money laundering regulations. The FCA’s actions demonstrate its commitment to holding financial institutions accountable for their role in preventing financial crime.

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