Inadequate dirty money regulation 'leaves UK open to terror funds': report

Sun Nov 22, 2015 7:16pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Lisa Barrington

LONDON (Reuters) - Britain's "woefully inadequate" anti-money laundering system has left the country wide open to corrupt money and terrorism funds and needs radical overhaul, a leading anti-corruption group said on Monday.

Each year billions of pounds of dirty money flow through Britain, but the system for identifying it is too fragmented and unaccountable to be effective, according to a report by Transparency International UK (TI-UK).

"The UK supervision system which should be protecting the country from criminal and terrorist funding is not fit for purpose," said TI-UK's Head of Advocacy and Research Nick Maxwell.

"Those vulnerabilities can be exploited by sophisticated terrorist organizations as well as the corrupt."

Penalties for professionals such as lawyers and estate agents who fail to comply with anti-money laundering regulations are also too small to act as a deterrent, the report said.

Money laundering is the process of disguising the origins of money obtained from crime and corruption by hiding it within legitimate economic activities.

The government's 2015 money laundering and terrorist financing national risk assessment said there was "evidence of terrorist financing activity in the UK" which uses the same methods as criminal money laundering and "poses a significant threat to the UK’s national security."

Money laundering is also pushing up London property prices because money commonly ends up in high-value physical assets such as real estate and art.   Continued...

A traffic sign is pictured in front of the skyline of the the Canary Wharf financial district in London October 21, 2010. REUTERS/Luke MacGregor