https://www.telegraph.co.uk/business/2025/02/13/barclays-under-investigation-over-money-laundering-controls/

Barclays is under investigation for potentially breaking anti-money laundering rules in a fresh setback for the bank.

On Thursday, the bank said the Financial Conduct Authority (FCA) was examining whether financial controls at its UK division had been too lax and if the lender had broken anti-money laundering laws.

“The FCA’s investigation focuses primarily on the historical oversight and management of certain customers with heightened risk,” it said. “Barclays has been co-operating with the investigation.”

The City watchdog, led by Nikhil Rathi, its chief executive, is conducting a civil enforcement investigation against the bank. Barclays did not provide any further details. The FCA declined to comment.

The investigation, revealed in the bank’s annual report, threatens to overshadow Barclays revival under CS Venkatakrishnan, the chief executive.

Shares in Barclays fell more than 5pc on Thursday to just under £2.92.

Barclays also revealed a dispute with HMRC over its interpretation of a change to the rules in the bank levy.

HMRC wrote to Barclays in December disputing the bank’s approach. The bank said engagement with HMRC was at an “early stage”.

The FCA investigation marks the latest regulatory headache for the bank, which has spent years trying to repair its reputation after problems following the 2008 financial crisis.

Last year, Barclays was fined £40m last year by the FCA over the bank’s financial crisis-era bailout with Qatari investors.

The group, which had been challenging the matter in court, was accused of being “reckless” by the FCA for not disclosing enough information about the deal.

Although Barclays said it did not agree with the FCA, it withdrew the action as it sought to “draw a line” under the matter.

The latest investigation comes after the FCA closed a separate two-year enforcement investigation into Barclays’ compliance with UK money-laundering regulations last year.

This investigation had focused on Barclays’ monitoring of transactions in certain parts of the UK bank.

Separately on Thursday, Barclays said pre-tax profits last year surged by 24pc to £8.1bn compared with the previous 12 months.

It marks the bank’s second-highest annual profits over the past two decades – only being surpassed in 2021 when earnings totalled £8.4bn.

The bank’s performance was flattered by the takeover of Tesco Bank, which helped inflate its performance.

A charge of £90m was also booked to cover costs related to an investigation in the motor finance mis-selling scandal.

Staff shared in a £1.9bn bonus pool, up from £1.75bn last year, to reward them for contributing to higher profits.

Mr Venkatakrishnan earned £10.5m last year – more than double the £4.6m he earned in the prior year.

The bank is also handing its 90,000 staff shares worth £500 each – at a total cost of £50m.