Barclays Bank charged by SFO concerning Qatar loans

Company - Mohit Shah - Feb 13,2018

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barclays bank charged by sfo concerning qatar loans

The Serious Fraud Office (SFO) has accused Barclays Bank for a $3bn Qatar loan sanctioned in 2008; “unlawful financial assistance” is the issue Barclays has been charged with.

Barclays has been charged by Serious Fraud Office (SFO) for the second time concerning a $3bn loan the financial organization made to Qatar during the period when Middle East investors purchased shares in the bank to support it up during the peak of financial crisis.

This latest charge has been imposed by SFO focusing on the case which dates back to 2012. Furthermore, the SFO charged the parent company of Barclays last year, together with accusations on its ex-chief executive, John Varley and three former senior bankers based on the offences associated to the bank’s £11.8bn emergency fundraising which occurred in 2008.

The SFO claims that loan was utilized either directly, or indirectly, for purchasing shares in Barclays that the SFO states is "unlawful financial assistance".

Barclays issued a response saying, "Barclays PLC and Barclays Bank PLC intend to defend the respective charges brought against them”. Furthermore, the bank assured that, as a result of this case there won’t be any “impact on its ability to serve its customers and clients”.  

These emergency funds associated to Qatar allowed Barclays to resist a government bailout in 2008; this was the phase when rivals Royal Bank of Scotland and Lloyds Banking Group were forced to depend on taxpayer rescue.

After a five-year investigation as a result of this deal with Qatar Holdings, the SFO charged Barclays PLC in June. This involved several former executives with the plot to commit fraud.