Barclays abandons appeal after being fined £40 million in Qatar financing disclosure case

According to Zhitong Finance APP, Barclays Bank (BCS.US) has been fined £40 million (approximately $50.3 million) by UK regulators for failing to disclose details of the Qatari bailout during the 2008 financial crisis and has decided to withdraw its appeal. The bank stated in a statement on Monday that although it does not accept the ruling, considering that many years have passed, it has decided not to contest it further and has already made a provision for the fine in 2022, so the decision on Monday will not have a significant impact on its financial condition.

Barclays Bank originally planned to have its appeal against the Financial Conduct Authority (FCA) ruling heard in court this week but announced on Monday that it would withdraw the appeal. The bank emphasized in its statement that while it does not accept the findings of the FCA's ruling notice, both parties have reached a consensus on the matter, and the bank has decided not to contest it further. Additionally, the bank had made the corresponding provision for the fine last year, so this decision will not have a significant impact on the bank's financial condition.

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, pointed out in another statement that Barclays Bank's misconduct was very serious, leading to investors not receiving all the information they were entitled to. However, he also acknowledged that these events occurred 16 years ago, and today's Barclays Bank is a completely different organization.

UK Regulators Previously Fined Barclays Bank £50 Million for Qatari Financing Incident

Two years ago, the Financial Conduct Authority (FCA) planned to fine Barclays Bank £50 million (approximately $55.8 million) for failing to disclose payment agreements with Qatar during its fundraising efforts in the 2008 financial crisis. Barclays Bank contested this and submitted the case for review by a higher court, insisting that it had not violated regulatory obligations.

At that time, the FCA accused Barclays Bank in a statement of failing to fully disclose consulting fees paid to Qatari investment vehicles, describing its behavior as "reckless" and lacking integrity. This penalty was the second time UK regulators imposed sanctions on Barclays Bank after it won a lawsuit against the UK's Serious Fraud Office and dismissed criminal conspiracy charges.

A spokesperson for Barclays Bank stated that the investigation results had been submitted for review by a higher court and emphasized that the bank had not violated regulatory obligations and therefore should not be penalized.

This investigation is related to Barclays Bank's efforts to avoid nationalization during the financial crisis. As the financial crisis swept through the bank's balance sheet and two competitors faced nationalization, Barclays Bank executives turned to Qatar for investment to avoid government bailouts. However, this transaction has since become a legal issue.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, pointed out that Barclays Bank paid hundreds of millions of pounds to Qatari investors to obtain new capital but failed to inform the market and shareholders as required, which is reckless and lacking integrity.

It is worth mentioning that the Financial Conduct Authority issued a warning notice to Barclays Bank in 2013, but the case was suspended until the Serious Fraud Office case concluded. The Serious Fraud Office case was dismissed because prosecutors failed to prove that bank executives were involved The FCA stated that it plans to establish "special attribution rules" to avoid similar determinations in the future, but Barclays questioned this, believing that the rules are confusing and impractical