Someone would need to dig into what exactly is reproached to City to even begin to see where that would go.
The only case where I could potentially see something (and I am in no way a legal person) would be that, maybe in order to pass FFP, City "lied" in term of origins of the funds by stopping at one company level. Say that company, through KYC and AML compliance, is linked now through someone in the Middle East (as a matter, I once worked for rules such as BCBS 231 Large Exposures framework or the US version, SCCL (Single Counterparty Credit Limits) and if they did not declare it for that purpose, to pass FFP, it might be an issue.
Now it's an issue for the FFP, but it can't really be a big deal for City unless the "owner" in the UAE or the Middle East who maybe owns City himself is on a ban list, which is certainly not the case.
It would be good if someone could summarize the real topic here though.