Barclays Fined for Failing to Minimize Financial Crime Risk
November 26 2015 - 5:11AM
Dow Jones News
By Ian Walker
LONDON--The Financial Conduct Authority said Thursday it has
fined U.K. bank Barclays PLC GBP72.07 million ($108.89 million) for
failing to minimize the risk against financial crime, its largest
ever fine for such failings, but stopped short of saying if a crime
had been committed.
The U.K. regulator said the failings relate to a GBP1.88 billion
transaction that Barclays arranged and executed in 2011 and 2012
for a number of ultra-high-net-worth clients. The clients involved
were politically exposed persons and should therefore have been
subject to enhanced levels of due diligence and monitoring by
Barclays, the regulator said.
"Barclays ignored its own process designed to safeguard against
the risk of financial crime and overlooked obvious red flags to win
new business and generate significant revenue. This is wholly
unacceptable," said Mark Steward, director of enforcement and
market oversight at the FCA.
"Firms will be held to account if they fail to minimize
financial crime risks appropriately and for this reason the FCA has
required Barclays to disgorge its revenue from the transaction,"
Mr. Steward said.
The fine comprises GBP52.3 million representing the amount of
revenue Barclays generated from the transaction, and a penalty of
GBP19.77 million, the FCA said.
Barclays agreed to settle the fine quickly and therefore
received a 30% discount.
Write to Ian Walker at ian.walker@wsj.com
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(END) Dow Jones Newswires
November 26, 2015 04:56 ET (09:56 GMT)
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