Barclays fined £72m for neglecting due diligence on PEPs in “deal of the century”

Barclays Bank has incurred the biggest fine handed out by the UK Financial Conduct Authority (FCA) or its predecessor, the Financial Services Authority, for breaches of rules to minimise financial crime risk – £72,069,400. [1] The penalty, on 25 November, relates to inadequate due diligence on politically exposed persons (PEPs) who engaged the bank for a global, highly confidential structured finance transaction, valued at £1.88 billion. Eight times larger than the previous record charge of £8.75m – against Coutts in 2012, also for PEP customer due diligence failings [2] – the fine comprises disgorgement of the £52.3m Barclays earned on the deal and a penalty of £19,769,400.