FSA reports on how banks deal with high-risk customers, correspondent banking relationships and wire transfers
The FSA has recently published its review (the "Bank AML Report") into how banks manage situations where there is a high risk of money laundering, focusing in particular on politically exposed persons, correspondent banking relationships and wire transfer payments. The FSA concludes that although it was able to find some examples of good anti-money laundering risk management, it also found serious weaknesses across a wide cross-section of the banks that the FSA reviewed. These ranged from being willing to accept very high levels of money laundering risk if the reputational risk was acceptable to three quarters of the banks in the FSA’s sample failing to take adequate measures failing to establish the legitimacy of the source of their clients’ funds.
Please click here to read an analysis of the Bank AML Report.Download entire issue (as pdf)