ASIC forces Barclays to pay out $80k after account mix-up

BARCLAYS Bank has been forced to cough up $80,000 after accidentally taking $13.8 million of client money, then not returning it for five business days.

Australia's corporate watchdog ASIC took the giant bank to task over the 2011 incident, apparently caused by a staffer pulling the pile of cash from the wrong account.

According to ASIC's findings released on Monday, the bank's London branch asked to be sent the sum of cash from its account held in Sydney on January 25 last year.

Unfortunately, the cash instead came from the "Barclays' Client Segregated Account", essentially money given to the bank by its customers.

On January 31 and February 2, the bank realised the mistake and hopped into action.

By February 4, the money was put back in place, although ASIC still investigated.

ASIC reported the bank cooperated with the investigation and agreed not to fight the decision.

ASIC also praised Barclays for "a good disciplinary history" with "no previous contraventions found against it" by its financial market investigator.

Barclays did not return requests for interviews on Monday.



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