Gideon Benari
In the first instance, Barclays did not adequately verify a potential client's history and created an account for WealthTek, a firm not permitted to manage client funds. According to the FCA, the bank needed to simply check the Financial Services Register to discover this information.
Establishing an account with WealthTek heightened the likelihood of misusing another person's funds. Clients sent £34m to WealthTek, which was not completely reimbursed.
The second instance pertained to services for Stunt & Co. Barclays was penalized £39.3m for not verifying the customer's information and monitoring his continuous transactions.
“The effects of inadequate financial crime measures are significant,” stated the FCA. “They enable offenders to clean the earnings from their illegal activities and tricksters to mislead buyers. Banks need to be accountable and respond swiftly, especially when specific risks are highlighted to them.”
source: ft.com
Establishing an account with WealthTek heightened the likelihood of misusing another person's funds. Clients sent £34m to WealthTek, which was not completely reimbursed.
The second instance pertained to services for Stunt & Co. Barclays was penalized £39.3m for not verifying the customer's information and monitoring his continuous transactions.
“The effects of inadequate financial crime measures are significant,” stated the FCA. “They enable offenders to clean the earnings from their illegal activities and tricksters to mislead buyers. Banks need to be accountable and respond swiftly, especially when specific risks are highlighted to them.”
source: ft.com
