International Banks Need AML Review

September 15, 2011 International Tax CooperationTaxation in UKTaxation in USA

Money Laundering in US BanksA group of financial transparency advocacy organizations have sent a letter to the US Treasury, saying that national banks need to tighten up their anti money laundering practices.

In a letter sent to the US Treasury Secretary Timothy Geithner the Financial Accountability and Corporate Transparency Coalition (FACT) has called for national bank regulators to conduct an extensive review on the anti-money laundering practices conducted by financial institutions.
The letter, which was published on September 13th, refers to a review recently conducted in the UK, which found banks were often neglecting to enact efficient anti-money laundering controls. According to FACT, the situation in other jurisdictions is no different and the US is no exception to the poor practices by banks.

According to the review, which was published by the UK Financial Services Authority, nearly 75 percent of all UK banks were not carrying out adequate due diligence procedures on their customers, and more than half of UK banks do not regularly review accounts and relationships with high risk customers and politically exposed persons.

FACT suggested that US lawmakers need to urgently act to find and close legislative loopholes which have allowed laundering of illicit funds through US bank. More efforts also need to be made to monitor the enforcement of already instated due diligence and anti money laundering legislation.

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