Barclays Bank (BCS, Financial) has been fined £40 million (approximately $50.3 million) by UK regulators for not disclosing details of Qatar's financial aid during the 2008 financial crisis. The bank announced its decision to withdraw its appeal against the fine, stating that although it disagrees with the ruling, the passage of time and existing provisions for the penalty mean the decision will not significantly impact its financial status.
Barclays had planned to contest the Financial Conduct Authority's (FCA) decision, but has now reached a consensus with the regulator to drop the appeal. The FCA had accused Barclays of failing to fully disclose consultancy fees paid to Qatari investors, labeling the actions as reckless and lacking integrity. Despite the serious nature of these allegations, the FCA acknowledged that the events occurred 16 years ago and that Barclays has since evolved into a different organization.
Previously, the FCA had intended to fine Barclays £50 million (around $55.8 million) for similar non-disclosures related to Qatar during the financial crisis. Barclays contested this, asserting no regulatory breaches occurred. The bank's actions were part of efforts to avoid nationalization during the crisis by seeking investment from Qatar, which has remained a legal challenge.
Barclays has questioned the FCA's proposed "special attribution rules," which aim to prevent similar issues in the future, arguing that the rules are confusing and impractical.
