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22 June 2011 - Financial Services Authority (FSA) report on Banks’ management of high money laundering risk situations

The Financial Services Authority (FSA) released a report on Banks’ management of high money laundering risk situations - How banks deal with high-risk customers (including PEPs), correspondent banking relationships and wire transfers (click the link to download the report). According to Tracey McDermott, Acting Director of Enforcement and Financial Crime at the FSA: “The review found that some banks appeared unwilling to turn away, or exit, very profitable business relationships, including with Politically Exposed Persons (PEPs), where there appeared to be an unacceptable risk of handling the proceeds of crime. Among other findings, three quarters of the banks sampled failed to take adequate measures to establish the legitimacy of the source of their customers’ wealth and the source of the funds to be used in the business relationship” (click here for the FSA press release). According to the Global Witnesspress release, ”Many of the failings identified by the FSA are the same as those it found ten years ago after £1 billion stolen from Nigeria by Sani Abacha came through London banks. This reflects terribly on the FSA’s softly-softly approach over the last decade, and makes it very clear why Egypt is now seeking the return of corrupt Mubarak funds from the UK. Neither dictatorship nor corruption can occur without banks willing to help” Visit our Resources and Publications pages for material on the same topics: United Kingdom, Compliance, Corruption, Money Laundering, Abacha Case, Mubarak Case. (from FraudNet member for Switzerland Yves Klein, of Monfrini Crettol & Associes, Geneva).

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