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Barclays fined £72m over financial crime risks

Posted at November 27, 2015 | Categories : News

The Financial Conduct Authority has fined Barclays over £72 million for failing to minimise the risk of financial crime.

The bank’s failings relate to a £1.88 billion pound transaction arranged and executed in 2011 and 2012 for a number of ultra-high net worth clients. The clients involved were politically exposed persons (PEPs) and should therefore have been subject to enhanced levels of due diligence and monitoring by Barclays.

The circumstances of the transaction gave rise to a number of features which, together with the PEP status of the individuals, indicated a higher level of risk. This required Barclays to adhere to a higher level of due skill, care and diligence but the bank failed to do this. Instead it applied a lower level of due diligence than its policies required for other business relationships of a lower risk profile, thereby generating £52.3 million in revenue.