It has been a truism that there is no system that is completely foolproof and no control unbeatable, given the right resources. Then a few weeks ago the author read that the only…
Abstract
It has been a truism that there is no system that is completely foolproof and no control unbeatable, given the right resources. Then a few weeks ago the author read that the only way to ever overcome the problems of financial crime was to develop in all organisations a ‘bullet‐proof prevention culture’. What a wonderful idea to have a culture which would prevent totally all forms of financial crime including, most importantly, money laundering. But what was actually meant by ‘bullet‐proof’? In this case it was probably meant to indicate a system so designed as to prevent anything penetrating its defences. There are, however, plenty of examples in history of supposedly bullet‐proof armour failing. So the truism was right all along and while the ultimate goal must be to deter all fraudsters and money launderers from using an organisation's services it is essential to be practical and recognise that this is an idealistic aim. No system of prevention can be both foolproof and also provide quick accessible service to the vast majority of customers who are perfectly upright and honest law‐abiding people.
The financial services industry is recognised as one of the prime participants in the worldwide battle against money laundering. However, this participation docs expose the…
Abstract
The financial services industry is recognised as one of the prime participants in the worldwide battle against money laundering. However, this participation docs expose the industry and the whole financial services system to a number of problems and dangers. Many of these dangers are theoretical and have been expounded on a number of occasions. Discussion in this paper is at a more practical level to show some of the very real and difficult dilemmas which the financial industry has to grapple with on a day‐to‐day basis.