PracticeAccounting FirmsBanks must ‘tighten’ laundering controls

Banks must 'tighten' laundering controls

A leading forensic accountant has warned that banks and other financial institutions are exposing themselves to money laundering.

Link: The Debate – reporting money laundering

Despite a 61% increase in spending by financial institutions on preventative steps against money laundering, many are still unable to track cross-border flows of illicit money, according to a survey by KPMG.

‘This is definitely something which needs to be tightened up,’ said Adam Bates, global chairman of KPMG Forensic.

‘I don’t think the regulators, or the public, are likely to find it amusing the next time a bank is found taking money from a corrupt general or political leader.’

Bates said that spending on technology and staff training have leapt following the tragedy of 9/11.

The survey also found that more than half of financial institutions now have sophisticated IT systems, but 94% still rely primarily on employees spotting discrepancies to trigger an investigation.

Related Articles

Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

3m Emma Smith, Managing Editor