Page 46 - Bank Case Studies

2015: Anti-money laundering and Financial Crime
Checks

In November 2015,

Barclays were fined £72m,

the largest fine ever
imposed by the FCA for

cutting corners on
financial crime checks and not properly monitoring a £1.9bn

transaction carried out on behalf of politically exposed persons

(PEPs) in 2011/12. It was claimed Barclays' staff were so keen to
attract the ultra-rich clients that they failed to carry out proper anti-

financial crime checks.

No evidence of any crime was actually found, but the FCA Authority
said Barclays had not carried out the appropriate checks to establish

the purpose of the £1.9bn transaction, or to sufficiently corroborate

the source of the funds from the clients who were said to be
prominent people in public life. It was claimed that Barclays had

applied a lower level of oversight than that required for other
business relationships of a much lower risk profile.