Barclays Cooperating in Probe of Liberty Reserve CaseAbigail Moses
Barclays Plc, the U.K.’s second-largest bank by assets, is cooperating as part of a probe into money laundering by the operators of Liberty Reserve SA.
U.S. prosecutors ordered the London-based lender to hand over records for an account at one of its Spanish branches in the name of Arthur Budovsky, the Sunday Times reported. Barclays isn’t being accused of any wrongdoing.
The U.S. last week charged seven people, including Budovsky, 39, of Costa Rica, and Vladimir Kats, 41, from Brooklyn, New York, of running an illegal money-transmitting business that masked more than $6 billion of criminal proceeds. Prosecutors said they used a digital currency backed by gold bullion.
Barclays was informed about the investigation last week and has been cooperating with the authorities, said John McGuinness, a spokesman for the bank in London.