Is Still London Remains a Haven for the World’s Dirty Money
According to a senior UK police source, London remains safe for “dirty money” as lawbreakers take advantage of the UK’s efforts to attract foreign direct investment. Regardless of government attempts, Graeme Biggar, CEO of the “National Crime Agency’s National Center for Economic Crime”, informed the subsidiary publication “Private Equity News” that it is still “too simple” for offenders to launder money in London. “[Money laundering] isn’t as simple as it used to be. But it still is quite simple,” Biggar added. The UK government established the NECC in recent years to combat financial crimes. The Serious Fraud Offices, the Financial Conduct Authority, the British Home Office, and the City of London Police are just a few of the organizations that are participants. And according to National Crime Agency, money laundering harms the UK by around £100 billion yearly.
London is World’s Most Influential Financial Hub
“There are many financial hubs across the globe, and laundering occurs in each of them. London is among the world’s most influential financial hubs. Biggar stated, “Undoubtedly, a lot is happening here.” “However, the policy environment we’ve adopted traditionally is one of the causes that’s one of the world’s largest financial centers,” he said (Ig.ft.com., 2020). He claimed that while a dynamic, business-friendly strategy allowed the city grow in prominence, “in certain instances, it went quite far.” To avoid [financial fraud], we need to get rid of it.” A damning parliament investigation on Russian interference in the UK dubbed London a “washing facility” in July, suggesting that the metropolis has been used to launder illegal cash.
“The administration is adamant that combatting illegal funding and clearing out the UK’s illegal cash and launderers is a commitment,” the government stated in reaction to the 50-page report. The year before, the state recognized that the “exploitation” of the UK’s banking system and large businesses for laundering money (dirty money) had harmed the company’s image in its “Plan Toward Economic Crime.”
Why Many Use London to Launder Money (Dirty Money)
“Right now, it’s quite simple to create a business and disguise who owns it,” Biggar added. The number of new businesses being formed is far greater than the number of businesses that might operate in the United Kingdom. This is generally known worldwide, which is why many use London to launder money. “We are keen to encourage investments in the United Kingdom in particular. “However, for those that are founded on criminality, we wouldn’t want that illegal cash around,” he continued. The FCA fined financial institutions for making anti-money laundering judgments. In June 2020, market surveillance penalized Commerzbank £38 million for failing to do the appropriate anti-money trafficking procedures for five years. It was the FCA’s third-highest punishment ever for methodological violations in this region.
Banks Penalized for Launder Dirty Money
Standard Chartered was penalized $1.1 billion (£842 million) by US and UK officials last year after allegedly lax money laundering procedures and failure to comply with sanctions on Iran. As per a study issued in August by consultant Duff & Phelps, worldwide charges regarding money laundering levied by authorities exceeded $706 million in the first quarter of 2020, as opposed to an annual amount of $444 million in 2019. Consumer proper research, anti-money laundering administration, suspicious behavior monitoring, and adherence monitoring and control were identified as the four main areas for recurring violations in the research (Chopra, S., 2020). “Intriguingly, examining the major AML faults highlighted by regulators, we find the very same areas constantly being penalized,” said Nick Bayley, Head of UK Regulatory Advisory at Duff & Phelps, in the study. This has been the case for regulators worldwide in the past 5 years.
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