The industry’s first and most detailed report into the financial sector’s perspectives on tackling money laundering contains some salutary warnings for the security managers of major banks and building societies.
Written by Professor Martin Gill and Geoff Taylor of The Scarman Centre at the University of Leicester, the survey states that although most firms conduct money laundering training on an annual basis, they’re only required to do so once in every two-year cycle. More worryingly, though, 12.5% of respondents to Gill and Taylor’s survey of banks, building societies, insurance and investment companies suggested that senior managers didn’t take part in any form of training.
Professor Gill told SMT: “The financial sector has been in the spotlight since September 11, and we know that security professionals are struggling to cope with all the regulation. Not only is that regulation seen as burdensome, but in some cases it’s actually getting in the way of tackling money laundering.”
The survey – which received a response from 65% of banks and 76% of major building societies – also suggests that only 6% of institutions are actually equipped with dedicated anti-money laundering software programs. Interestingly, most respondents were very negative about the capability of such software to monitor transactions effectively (including those firms in which such systems are in use). In addition, many firms appear to be concerned that any commitment to tackling money laundering might be assessed on the number of suspicious disclosures submitted.
Some organisations questioned stated that, on occasion, suspicions about money laundering may not be passed on because of a lack of means and time to do so. That would seem to suggest that certain factions within the financial sector are not doing all that they might to counter the problem. “The minority fear that disclosing could undermine client confidentiality,” added Professor Gill. “That in itself raises a residual concern that merits attention.”
Copies of the report – entitled ‘Money Laundering: the Experiences and Perspectives of the UK Financial Sector’ (ISBN: 1-874493-82-0) – are priced at GB pound 25, and are available direct from The Scarman Centre, University of Leicester, 154 Upper New Walk, Leicester LE1 1QQ.
