The UK’s Financial Conduct Authority (FCA) has fined Barclays £40 million ($50.9 million) for failing to disclose payments made to Qatari entities during the 2008 financial crisis.

The penalty follows Barclays’ decision to withdraw its appeal against the regulator’s findings.

Barclays emphasized that by ending its appeal, it was not admitting wrongdoing but aiming to close a long-running chapter that has lingered over the bank for 16 years. The case centers on how Barclays sought financial support from Middle Eastern investors at the height of the global financial crisis to avoid a government bailout.

The FCA’s investigation revealed that Barclays paid undisclosed fees to Qatari funds involved in the rescue, a practice the regulator labeled as reckless and lacking integrity. In 2022, the FCA imposed a £50 million fine, which Barclays contested.

On Monday, the bank announced it had withdrawn its appeal, citing the prolonged time since the events and the best interests of its stakeholders. Barclays stated that the fine would not have a material financial impact.

The appeal hearing had been scheduled to begin Monday, with witnesses, including former Barclays CEO John Varley, expected to testify. However, by withdrawing the appeal, Barclays avoided further litigation.

“Barclays’ misconduct was serious and deprived investors of critical information,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “That said, these events occurred 16 years ago, and Barclays has since transformed into a very different organization, having implemented significant changes across its operations.”

The case marks the conclusion of one of the longest-running regulatory sagas stemming from the global financial crisis. Photo by GroupEditor, Wikimedia commons.