The FTSE 100 bank said on Friday that the Financial Conduct Authority and Prudential Regulation Authority are alleging the CEO broke rules of individual conduct, or a requirement to "act with due skill, care and diligence", and would face a financial penalty.
"Each have proposed that he pay a financial penalty", Barclays said.
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Staley has been issued with draft warning notices, and now has a chance to respond to the authorities.
Barclays said its board continues to have unanimous confidence in Staley and will recommend his re-election as a director at the company's annual general meeting on May 1. The regulators, however, have requested Barclays Bank PLC and Barclays Bank UK PLC to submit certain aspects of their whistleblowing programmes.
The Guardian meanwhile reported that influential advisory group Institutional Shareholder Services had this week called for a vote in favour of Staley at the AGM "even though it is not without concern for shareholders".
Mr Staley, who had asked the bank's security team to identify the author of the letter, can appeal the decision.
Barclays announced to the stock market in April past year that Staley and the bank were under investigation by the FCA and the PRA for the affair.
Then, early in 2017, an employee complained to the Barclays board about its whistle-blowing procedures, pointing out Mr. Staley's reaction to the anonymous letter writer the prior summer.
The regulators' investigation also concluded no enforcement action will be taken against the bank.