Laundering

Extracts from a speech on Money Laundering precondition by Howard Davies, Chairman, the FSA at Xerox UK, 15 October 1999 The well publicise investigations which ar under way into the Bank of New York thing with s Russian counterparties check reminded everyone of the need for pecuniary firms to hit the books particular c atomic number 18 in choosing counterparties and understanding fully the crease of the funds they deal with. Investigations into that case are continuing and I so-and-so non of course say anything about the specifics of it. just whatever the outcome, on that accuse are three important points which firms need to bear in mind constantly: First, the point cannot be made in any case often that there are compelling needs for financial institutions to carry out veracious due diligence on the counterparties and clients they deal with and the provenance and use of funds that they process. This is not incessantly easy because doubtful funds may often have passed through several intermediate stages, with the express purpose of disguising their origin, forrader major firms have any contact with them. But this does not detract from the need to have rigorous process which are widely understood and implemented to minimise any attempt of the firm dealing, even unwittingly, with the proceeds of criminal activity.



All these are matters both of law and of selfprotection against credit, reputational and other risks. I do not of course wish to suggest for a moment that wholly funds originating in Russia are the product of illegal activity. But it is well established that Russia is a high-risk area from this point of view and this means that firms need to be particularly sharp-eyed when dealing with business from that country. At the same time, however, the current engrossment with Russia should not obscure the fact that doubtful funds can originate literally anywhere in the world. This means that proper procedures need to be followed when dealing with all counterparties, particularly parvenu ones. It would also be a mistake to...If you want to compass a full essay, order it on our website: Orderessay



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