Following claims by The Guardian that British banks handled vast sums of laundered Russian money, Professor Pete Hahn was invited on to BBC Radio 5 Live’s Wake Up to Money Programme, to discuss the banking industry’s response.
Money laundering carried out by banks, Pete explained, usually happens in three ways, either:
- Certain banks actively help people to move money illegally;
- A bank’s management doesn’t care that its services are being used for illegal means, and;
- Management are struggling to keep up with increasingly sophisticated criminals.
This last example, Pete explained, is the most likely explanation, with banks finding it difficult to identify the beneficiaries of corporate accounts.
What, then, should banks do? Greater sharing of best practice would be one solution, according to Pete, with the banks that did identify fraudulent transactions, sharing their findings to alert other banks.
To listen to the interview in full, please click here: http://www.bbc.co.uk/programmes/b08j97d6#play at the 35 minute mark