Barclays Faces Lawsuit in Proposed U.S. Class Action
Closure of Barclays Branch Sparks Concern Among Customers
Irish Unit of Barclays Faces Scrutiny as Post-Brexit Hub
NEW YORK, Sept 23 (Reuters) - Barclays Plc (BARCL.L) was sued on Friday in a proposed U.S. class action lawsuit alleging that the British bank misled investors about its anti-money laundering controls.
The lawsuit, filed in Manhattan federal court, alleges that Barclays made false and misleading statements about its compliance with anti-money laundering laws, which led investors to purchase the bank's securities at inflated prices.
The lawsuit seeks unspecified damages and a court order requiring Barclays to correct its alleged misstatements.
Barclays has not yet commented on the lawsuit.
Branch Closure Concerns
The closure of a Barclays branch in a town centre will make life extremely difficult for its customers, they have said.
The branch in question is the only one in the town, and its closure will leave customers with no local access to banking services.
Customers have expressed concerns about how they will be able to withdraw cash, deposit cheques, and pay bills without a local branch.
Barclays has said that it is committed to supporting its customers and will be providing alternative banking options, but customers remain concerned.
Irish Unit Scrutiny
The Irish unit of Barclays, which has become the British bank's post-Brexit hub, is facing scrutiny from Irish regulators.
The Central Bank of Ireland is investigating whether Barclays Ireland is complying with Irish anti-money laundering and counter-terrorism financing laws.
The investigation is ongoing, and no findings have yet been made.
Conclusion
These recent developments highlight the challenges facing Barclays as it navigates the complex regulatory landscape in the wake of Brexit. The lawsuit, branch closures, and regulatory scrutiny all serve as reminders of the ongoing need for financial institutions to maintain high standards of compliance.
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