Expert: Money-laundering not yet tackled

News Article - 04 September 2007
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The Financial Services Authority's (FSA's) battle to crack down on money laundering has not been a success thus far, a news study has claimed.

Accountancy firm PricewaterhouseCoopers (PwC) conducted research into the topic since the FSA brought in a new set of risk-based guidelines, finding that 82 per cent of finance companies have realised no cost benefits, the Lawyer reports.

Moreover, ten per cent of those institutions polled admitted that they are yet to migrate to this new rulebook.

Andrew Clark, a partner at the big four accenting body, commented: "It's critical to address the efficiency of anti-money laundering systems.

"Many are proving inadequate at identifying potential abusive transactions."

He added that firms still need to make further progress with regards to the crime, with increasing pressure upon them to ensure their systems are watertight.

The Crown Prosecution Service describes money laundering as a process whereby moneys made by illegal means are "sanitised to disguise their illicit origins".

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