Clients of John Dance's WealthTek to receive £6.3m from Barclays after money laundering failures

Clients of John Dance’s WealthTek will receive £6.3 million from Barclays following the bank’s failure to conduct even “one simple check” on money laundering which resulted in customers’ funds being put at risk.

As well as making the voluntary payment, Barclays Bank UK has been fined £3,093,600 by the Financial Conduct Authority (FCA) after the bank opened an account for WealthTek even though the City watchdog did not allow the discretionary fund manager to hold client funds.

WealthTek customers placed £34m into the Barclays account, but in April 2023 the firm was shuttered after the discovery of “serious regulatory and operational issues”.

Dance, principal partner at Newcastle-based WealthTek, was subsequently charged in December last year with money laundering and fraud in what the FCA described as “one of the most serious and largest frauds we have ever investigated”.

The FCA alleged Dance transferred over £64m in client funds for his own use in pursuing a “lavish lifestyle” which included owning a string of racehorses and a nightclub.

Prior to April 2023, Dance was a prominent owner in British racing, campaigning the likes of six-time Group 1 winner Laurens, King George VI Chase winner Bravemansgame and sponsoring the Group 1 Futurity Trophy at Doncaster.

In addition, Dance employed James Horton as a private trainer, retained jockey PJ McDonald and was in the process of building a bespoke training facility at Manor House Stud in Middleham.

Therese Chambers, FCA joint executive director of enforcement and market oversight, said: “The consequences of poor financial crime controls are very real – they allow criminals to launder the proceeds of their crimes and they allow fraudsters to defraud consumers. 

“Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.”

In February Dance pleaded not guilty to the charges brought against him. His trial is due to take place at Southwark Crown Court in September 2027.

Read more here

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