Page 47 - Bank Case Studies

The regulator said that Barclays

"did not follow its standard procedures, preferring

instead to take on the clients as quickly as possible
and thereby generated £52.3m in revenue".

The billion-pound transaction was cloaked

in secrecy with unusually tight
confidentiality clauses, meaning few within

the bank knew of its existence, or where to
find the due diligence records, which were

kept only in hard copy and not in the bank's
IT systems.

The fine includes the £52.3m revenue that Barclay's made on the

deal, plus an additional charge of £19.8m. The top-up was reduced

by 30pc as the bank agreed to settle the case quickly.

“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. Press Releases Published: 26/11/2015

“The fine comprises disgorgement of £52.3 million,
which is the amount of revenue that Barclays

generated from the Transaction, and a penalty of

£19,769,400. This is the largest fine that has been
imposed by the FCA and its predecessor the FSA for

financial crime failings.”

Press Releases Published: 26/11/2015