Top UK Banks Agree To New Anti-Laundering Measures

by Philip Morton, Investors Offshore.com

17 July 2002

Six of the UK's major banks on Monday issued a 'Statement of Principles for Fighting Crime and the Financing of Terrorism', designed to tighten their anti-money laundering rules still further, and silence their critics.

HSBC, Barclays, Lloyds TSB, the Royal Bank of Scotland Group, HBOS and Abbey National have all agreed to check the identities of existing customers who joined them prior to 1994, when such checks became a legal requirement.

This will be achieved by cross-checking account details with the electoral register. Although the banks expect the majority of customers to be identified immediately, any mis-matches are likely to result in further checks.

The six banks have additionally agreed to increase investment in monitoring equipment will allow them to spot unusual transactions more easily, train staff to recognise possible signs of money laundering activity, work closely with regulators and law enforcement agencies, and cooperate with other groups within the banking and financial services industry.

Speaking at the Financial Services Authority conference on money laundering issues, Carol Sergeant, Managing Director of the financial services watchdog, gave the Statement of Principles her full support, announcing:

'We very much welcome the initiative and the common sense way it will be handled.' She went on to observe that: 'It will be important for the major banks' example to be followed more generally in the financial sector. The FSA intends to discuss both with individual firms and their associations proposals for taking this work forward on a similar basis.'

Ms Sergeant added: 'We will also consult later in the year about introducing a rule to ensure this issue is gripped by all firms and that high standards are in place across the whole financial services sector.'

Recommended