The Threat
The Scale of Financial Crime
- Hundreds of billions laundered through global finance every year
- The UK sits at the heart of the threat as the world's leading financial centre
Anti-Money Laundering & Financial Crime Prevention
Lesson 1: Introduction to AML & Financial Crime
What money laundering is, the three stages, and why it matters at Barclays
Definition
What is Money Laundering?
- Making illegally obtained money appear legitimate
- Proceeds of drug trafficking, fraud, and corruption
- Transformed into funds that can be spent without suspicion
Global Impact
The Global Scale
2–5%
of global GDP laundered annually
$2 Trillion
estimated annual total
UK Focus
The UK Picture
£10bn
through money mule accounts yearly
37,000
accounts flagged in 2023
The Three Stages
Stage 1: Placement
- Getting dirty cash into the banking system
- This is where criminals are most exposed
The Three Stages
How Placement Works
- Smurfing — breaking cash into small deposits
- Cash businesses used as fronts
- Money mules recruited through social media
- Many mules do not even realise they are committing a crime
The Three Stages
Stage 2: Layering
- Creating a maze of transactions to hide the origin
- Shell companies and multi-country wire transfers
- Crypto mixing and trade fraud
The Three Stages
Hiding the Trail
- A single sum can move through 5–6 countries in hours
- Crosses regulatory boundaries each time
- By the time it arrives, the trail has gone cold
The Three Stages
Stage 3: Integration
- Money re-enters the economy looking clean
- UK property is a favourite vehicle
£10bn
laundered through UK real estate yearly
Barclays Response
Financial Crime as a Principal Risk
- January 2025: elevated to a principal risk
- Alongside credit risk, market risk, and operational risk
- Recognised as a standalone, material threat
Case Study
The Stunt & Co Case
- £46.8 million from Fowler Oldfield — a convicted launderer
- Police warnings and raids were ignored
- Barclays waited five years before reviewing
Case Study
The Penalty
£42M
FCA fine
- International headlines
- Damaged trust
Regulatory Warning
The FCA's Message
“The consequences of poor financial crime controls are very real — they allow criminals to launder the proceeds of their crimes.”
— Therese Chambers, FCA
— Therese Chambers, FCA
Your Role
Your Personal Responsibility
- Recognise the warning signs
- Report your concerns
- Protect the bank, its clients, and yourself