Barclays Under FCA Money-Laundering Probe, Faces Tax Dispute

Barclays has disclosed an ongoing investigation by the UK’s Financial Conduct Authority (FCA) into its anti-money laundering (AML) controls and tax practices, along with setting aside £90 million for potential car finance mis-selling claims.

The FCA’s probe primarily targets Barclays’ historical oversight and management of high-risk clients, scrutinizing its compliance with anti-financial crime regulations. Additionally, the bank is facing a dispute with UK tax authorities regarding its interpretation of bank levy legislation, an annual charge introduced post-financial crisis.

These latest revelations follow Barclays’ £40 million fine in 2023 for failing to disclose certain agreements with Qatari entities during its 2008 capital-raising efforts. Initially investigated by the FCA in 2013, the case was paused due to criminal proceedings by the Serious Fraud Office, which were later dismissed. The FCA resumed its inquiry in 2022, leading to further regulatory scrutiny.