U.K. “PEP”s case involving Barclays has lessons for other banks
While American bankers enjoyed Thanksgiving in late November,
Barclays was hit with a £72,069,400 ($108,453,630) penalty,
the largest ever imposed by the U.K.'s Financial Conduct
Authority (FCA) or its predecessor in a financial crimes-related
enforcement proceeding.
The reason for the fine? According to the FCA's report,
Barclays went to "unacceptable lengths to accommodate
the clients." [Read "FCA fines Barclays £72 million for poor
handling of financial crime risks," FCA's press
release.]
FCA's decision is instructive for banks and their advisors,
even those only doing business in the U.S. The case makes important
points about the level of due diligence required on customers and
transactions, as well as the role of senior management in
mitigating risk. Financial regulators on both sides of the Atlantic
have been giving these matters considerable attention.
