Banking & Money Laundering

Crime pays. Yup, seems like no matter what the banks and financial system participants say about tight money laundering, only a very tiny percentage of this ‘laundering’ gets caught. Like 2%. Scary.

An expert in compliance has gone on the record stating that there is around $1.6 trillion of global money laundering going on and less than 2% is actually caught. That’s pretty shocking considering the controls we are led to believe financial institutions have in place to stop it. Seems if banks can make more money from doing a deal than it will cost paying a fine, than they do the deal. Pretty interesting. (Bill Taylor/CEO)

“I was surprised the other day when I met Pawel Kuskowski, CEO and co-founder of Coinfirm, a startup firm offering Compliance-as-a-Service. Pawel has been trained in compliance and AML having worked with some of the world’s biggest financial institutions, including AIG (compliance officer), UBS (director of compliance, compliance and operational risk officer) and RBS (head of global anti-money laundering, AML). Why was I surprised? I was surprised by his opening line: “There is around $1.6tn of money laundering globally and less than 2% is caught by the financial system.”

WTF? This is a guy who knows AML inside and out, and he’s telling me the banks are that crap at AML? Banks spend billions on AML and compliance and risk. I know, as I’ve met so many of them. I also know how difficult it is because AML, risk and compliance are the banes of bankers’ lives. For every person who works for a bank, they have at least two people checking that what they do is acceptable. This means that it’s a continual fight (or balance) between taking business and risk. For example, when a banker sees a good deal – we can make millions if we deal with this dodgy money transfer network in Mexico ­­– they will do whatever they can to get around the compliance rules to make it happen.”

Read Full Article at BankNxt