The case had been instigated by the Financial Services Authority earlier this year and follows a series of costly and damaging episodes for the bank.
According to reports, the current investigation centres on whether Barclays adequately disclosed fees it paid to the QIA as part of a Middle East capital raising in 2008. Neither the FSA nor SFO have released statements about the investigation.
In a very short statement the bank said: “Barclays confirms that the Serious Fraud Office has commenced an investigation into payments under certain commercial agreements between Barclays and Qatar Holding LLC.”
Headquartered in Doha, the QIA, which is part of Qatar Holdings, was set up by the Qatar government in 2005 and, according to its website, aims to “strengthen the country’s economy by diversifying into new asset classes”.
In 2008 at the height of the financial crisis, the QIA bought a substantial stake in Barclays when it was struggling to keep afloat, making it the bank’s largest shareholder. It is this capital raising which it is understood to be under scrutiny. The QIA sold the majority of its shares the following year, reportedly doubling its investment.
The criminal investigation follows a fine of £290m handed to the bank in June after a regulatory probe into its attempted manipulation of Libor interbank borrowing rates. The investigation and fine led to the resignation of Barclays chairman, Marcus Agius, and chief executive, Bob Diamond.
Barclays announced this morning that Antony Jenkins, former head of Barclays’ retail and business banking division, has been appointed the new chief executive, while Sir David Walker, an outspoken critic of high banker pay, was appointed as chairman earlier this month.
