Barclays fined £42mn for failed money laundering checks

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.The UK’s monetary regulator has fined Barclays £42mn for failing to correctly handle cash laundering dangers on two events. The Monetary Conduct Authority on Wednesday mentioned Barclays had been fined for “failings in its monetary crime danger administration”, together with opening a consumer cash account for wealth supervisor WealthTek, which was shut down for “critical regulatory and operational points”. “One easy test it may have completed was to take a look at the Monetary Providers Register earlier than opening the account. Had it completed so, it could have seen that WealthTek was not permitted by the FCA to carry consumer cash,” the FCA mentioned. Barclays has agreed to make a £6.3mn fee to WealthTek’s shoppers, who haven’t been capable of reclaim all the cash they misplaced, the regulator mentioned. Within the second case, the FCA mentioned Barclays offered banking providers to Stunt & Co, which went on to obtain £46.8mn from Fowler Oldfield, “a multimillion-pound cash laundering operation”.“Barclays didn’t correctly contemplate the cash laundering dangers related to the agency even after receiving data from legislation enforcement about suspected cash laundering by Fowler Oldfield, and after studying that the police had raided each companies,” the FCA mentioned. The FCA mentioned that Barclays “continues to have interaction and put money into a major remediation programme” to enhance its anti-money laundering management framework. It is a creating story