Staley, who resigned in 2021, is appealing the watchdog's ruling banning him from senior roles in the UK financial industry.
In a 2019 letter to the Financial Conduct Authority (FCA), Barclays said Staley and Epstein "did not have a close relationship."
At the tribunal, FCA lawyer Leigh-Ann Mulcahy KC showed documents to Staley and tribunal judges, asking about his sexual encounter with Epstein's staff in Epstein's brother's apartment.
"Yes," he replied.