Barclays Under FCA Investigation Over Anti-Money Laundering Controls

Barclays has revealed that the UK’s Financial Conduct Authority (FCA) is investigating its anti-money laundering controls, just months after the regulator imposed a £40 million fine on the bank. The FTSE 100 lender disclosed the civil enforcement probe in its annual report, which was released alongside its fourth-quarter earnings.

“The FCA is conducting a civil enforcement investigation into Barclays compliance with the Money Laundering Regulations 2007 and the FCA’s Principles of Business and Rules relating to anti-money laundering and financial crime controls,” the bank stated. “The FCA’s investigation focuses primarily on the historical oversight and management of certain customers with heightened risk. Barclays has been co-operating with the investigation.”

The FCA has not yet commented on the probe.

This latest investigation adds to a series of regulatory actions against Barclays. Just last year, the FCA fined the bank £40 million over payments to Qatari investors during its 2008 emergency fundraising. In 2015, the regulator also fined Barclays £72 million for failures in financial crime checks on wealthy Qatari clients. The current scrutiny follows a 2022 Financial Times report revealing that the FCA had ordered an independent review of the bank’s financial crime detection systems. In 2023, the regulator also issued warnings to UK banks more broadly, urging them to strengthen their anti-money laundering controls.

Beyond this investigation, Barclays is also embroiled in a dispute with UK tax authorities over its interpretation of bank levy rules. Introduced after the financial crisis, the levy applies to UK-based balance sheets and has led to disagreements between the bank and regulators. Additionally, Barclays is dealing with the ongoing car finance mis-selling scandal, which analysts estimate could cost the industry billions. While the bank has set aside £90 million in provisions, it is considered less exposed than competitors such as Close Brothers, Lloyds Banking Group, and Santander UK, having exited the market in 2019.

Despite these challenges, Barclays posted a strong financial performance for the fourth quarter, reporting a net profit of £1 billion—a sharp turnaround from the £111 million net loss recorded in the same period last year. Group revenue rose by 24% to £7 billion, surpassing analysts’ expectations of £6.7 billion.

By fLEXI tEAM