Money Laundering in 2017

What is Money Laundering?

Money laundering is a way of concealing the source of illegally obtained assets. Funds pass through a complicated series of financial transactions, misleading anybody who tries to follow the trail back to the original source. It effectively makes illegal money, clean.

Money Laundering is a crime, regulated in the UK by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

You face up to 14 years in prison for breaking these regulations.

A Recent Case of Money Laundering

Labour peer Peter Hain has written a letter, which the Treasury has passed onto the Financial Conduct Authority (FCA) and the Serious Fraud Office (SFO), asking for banks Standard Chartered and HSBC to be reviewed. Hain suggests that the banks may "inadvertently have been conduits" for money laundering in South Africa. Neither bank has responded to the accusations as of yet.

The allegation is thought to have been surrounding wealthy business family, the Guptas and South Africa’s President Zuma. However, both parties have denied any involvement in the situation.

Evidence suggests that the Guptas have a strong relationship with President Zuma and that the Guptas have bought influence in the South African government through this link.

These allegations were the cause of public relations company Bell Pottinger to go into administration in September this year. The PR firm suffered an exodus of clients and increasing losses in the wake of the scandal over its campaign to stir up racial tensions in South Africa.

The Gupta family have already suffered a loss of major business contacts, due to their diminished legal reputation. If the allegations are proven to be true they will also face a lengthy prison sentence. This all goes to show the seriousness, and ultimately the futility, of money laundering.

Preventing Money Laundering

£40 billion is laundered through the UK every year. That is the equivalent to £100 million every working day! In hopes of raising awareness, iHasco offer an Anti-Money Laundering Training course.

The course is aimed at anybody who works in the financial sector, or anybody who handles large amounts of money.

The course explains what money laundering is and how crucial it is for employees to be on the lookout for anything that doesn't look or feel right when dealing with customer transactions.

Check out our Anti-Money Laundering Training course and claim your free, no obligation trial which grants you instant access!