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Major World Banks Agree on Anti-Money <br>Laundering Code- Nations & States - Global Policy Forum Major World Banks Agree on Anti-Money
Bussiness Recorder
Laundering Code
October 31, 2000
Eleven of the world's top banks announced details on Monday of a new code designed to crack down on money-laundering, and said they hoped the ground rules would be adopted by other institutions as well. The agreement on the code, announced in outline last week, comes after criticism of the laxity of banks' efforts to fight money-laundering in established financial centres and offshore markets.
The banks are ABN-Amro, Banco Santander, Barclays, Citigroup , Chase Manhattan Corp, Credit Suisse Group, Deutsche Bank, HSBC Holdings, J.P. Morgan, Societe Generale, UBS. The guidelines, named the Wolfsberg directives after the Swiss town where they were formulated, were published together with global anti-corruption organisation Transparency International (TI). TI President Peter Eigem said in a statement that they aim "to make it harder for the corrupt to sluice their illicit gains into the global banking system". The banks would only accept those clients who could reasonably show the source of their wealth was legitimate and whose identity could be clearly established.
In the case of intermediaries, banks must establish who ultimately owns the funds. "The bank will apply heightened scrutiny to clients and beneficial owners resident in and funds from countries identified by credible sources as having inadequate anti money-laundering standards or representing high-risk for crime and corruption," the guidelines say. Public officials would also require heightened scrutiny.
Recent revelations that dictators and mafia groups stashed away illicit millions with the knowledge of banks have increased pressure on financial institutions to take action. Only last week, Britain's Financial Services Authority said it was investigating the role played by London banks in the alleged laundering of some of the $3 billion looted by the late Nigerian dictator Sani Abacha.
Copyright 2000 Reuters (Published under arrangements with Reuters)
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