Barclays hit with whopping £72m fine
Barclays have been slapped with a whopper of a fine - to the tune of £72 million - by the Financial Conduct Authority. Why? The FCA say that the bank "ignored its own process" when handling a £1.9bn transaction for a group of people described as 'wealthy and politically connected'.
*Harry Hill sideways look to camera*
The FCA said that Barclays "went to unacceptable lengths to accommodate the clients" and didn't carry out sufficient checks on the deal which meant they "failed to minimise the risk that it may be used to facilitate financial crime."
This transaction went through in 2011/12, and Barclays executives knew it involved "politically exposed people", which should've seen the company being extra careful and monitored things more closely.
However, it turns out that the bank rushed the whole thing through, and made themselves £52.3m in revenue as a result. UK banks are supposed to be extra vigilant when it comes to doing transactions for those "who may be able to abuse their public position for private gain", in a bid to reduce the risk of bribery and such.
The FCA found no involvement of financial crime in the transaction, and haven't said who was involved. Either way, this penalty is the largest imposed by the FCA or its predecessor for financial crime failings. Barclays had to hand over the money they made from this dicky looking deal, and were fined £20m on top.
Mark Steward, from the FCA 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. Firms will be held to account if they fail to minimise financial crime risks appropriately and for this reason the FCA has required Barclays to disgorge its revenue from the transaction."