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Barclays reveals FCA ML probe and tax fight

Monday 17 February 2025 10:58 CET | News

Barclays has revealed an FCA money-laundering probe and tax fight, as well as provisioning GBP 90 million for potential car finance mis-selling costs.

Following this announcement, Barclays has revealed a series of alleged misconduct issues that have put it under investigation once more. The banking group is currently probed by the FCA over alleged tax controls against anti-money laundering and financial crimes. 

The British lender also disclosed the civil enforcement investigation in its annual report published alongside its fourth-quarter earnings, which included a GBP 90 million provision for potential car finance mis-selling costs as a result of a separate FCA probe.

Barclays reveals FCA money-laundering probe and tax fight

More information on the announcement

The new ML investigation will focus primarily on the historical oversight and management of certain clients with heightened risk, while Barclays is also facing a separate challenge from UK tax authorities over its interpretation of bank levy legislation. This represents an annual charge applied to UK balance sheets that was introduced following the overall financial crisis.

The Financial Conduct Authority did not provide any further details or comments on the matter. 

The fresh disclosures come one year after the Financial Conduct Authority imposed a GBP 40 million fine on Barclays for failing to disclose specific arrangements with Qatari entities during its 2008 capital-raising efforts. The penalty also followed Barclays' overall decision to withdraw its appeal to the Upper Tribunal against the FCA's enforcement action. The FCA had determined that Barclays' conduct in the October 2008 capital raise lacked integrity.

The FCA initially issued warning notices against Barclays back in 2013. However, the case was then paused due to criminal proceedings led by the Serious Fraud Office, which were later dismissed. After the acquittal of all related parties, the Financial Conduct Authority resumed its investigation, publishing decision notices in October 2022.


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Keywords: compliance, fraud management, money laundering, fraud prevention
Categories: Banking & Fintech
Companies: Barclays, FCA
Countries: United Kingdom
This article is part of category

Banking & Fintech

Barclays

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FCA

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