The FT reported yesterday that:
Billions of pounds of corrupt cash are flowing through the UK's financial sector, according to an official report that accused “known professional enablers” in the legal and property sectors of facilitating money-laundering.
In the first assessment of its type, the government branded the banking, law and accountancy industries as posing a “high risk” of money-laundering. It concluded that the size and complexity of the financial sector left it “more exposed to criminality” than in many other countries.
The professions are not happy, of course. But some of us have said this for a very long time. It's good to be confirmed to be right.
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Mock display of horror and wringing of hands! As you say, Richard, something you’ve been talking about for years. But:
” there was evidence that banks were leaving themselves vulnerable when it came to dealing with the risks associated with “politically exposed persons” that recent investigations had linked to international corruption.”
What does this imply-more M.P’s/Lords-does this mean it will be ‘silenced’?
the amount of money laundering checks that have to be performed before a big 4 accountancy firm can start giving advice have got progressively more and more thorough. I cant speak for the banks but i would be amazed if the large accounting and law firms were involved in anything illegal given the numerous checks that have to be performed and signed off on
I note your opinion
I suspect the weak links are elsewhere
As always, a polite reply: I would be reading far too much into it if – heven forfend! – I imputed a suggestion that the respectable professionals of London only handle money when they’re satisfied that it’s been laundered thoroughly.
A recent BBC report focussed very strongly on TCSPs as the “weak link”.
How “Enronesque” ?
Its interesting that every UK Govt since 1979 has supported the city. Blair & Cameron infamously so.
That, I think, would put the British taxpayer in quite a vulnrerable position if someone chose to sue us, the UK, for criminal actions committed by the UK financial sector against foreign countries on our watch.
It’s a big issue in parts of Canada with foreign property speculation, one issue is that if a transaction goes through a lawyer he doesn’t have to report it under the money laundering rules as it would be a breach of client privelege. Massive loophole, also if you physically bring cash into the country over the allowed limit you pay a % fine and the money is returned to you
I was part way through a punt once when I was asked if I could help someone get a passport. That’s a red flag that you might be dealing with a trafficking victim who’s had her passport confiscated by a trafficker. This was before the main event, but I pulled myself out of there and called the police using the redline service.
I do hope Richard that you’ve filed reports to the police yourself of any evidence you’ve encountered of money-laundering and any evidence of enabling money-laundering.
I am very well aware of the law
I’m guessing that means no. That after writing extensively about money-laundering and enabling money-laundering for a long time, as well as other criminal activities ( tax evasion being the headline example ) occurring on a much larger scale than the official figures, you haven’t filed any reports directly to the police or HMRC attaching evidence at the individual or company level.
Is there a link to the official report please?
Sorry: haven’t got it now
Didn’t a police chief in London say there was rampant money laundering using the obscenely priced level of housing in London and the South-East?
He reckons much drug money is being laundered through the housing bubble.
@Richard Murphy – Here’s something you might be interested in – “How Much Money Does the 1% Have Hidden in Tax Havens?” http://www.nakedcapitalism.com/2015/10/how-much-money-does-the-1-have-hidden-in-tax-havens.html
I have just reviewed the book for the Times Higher Ed – out soon
“banking, law and accountancy industries as posing a “high risk” of money-laundering.”
So business sector involved in moving money is at higher risk of illegal transactions involved in moving money, would be good to see something a little more concrete
The blog provided a link
Go and read it
As it is you are simply using semantics to dismiss the issue
‘Could’?
I suggest that you put forward a totally flawed hypothesis Professor Murphy!!!!!
If CDO’s and sub-prime loans crossed international boundaries via finance then it stands to good sense that ill-gotten gains will also do the same.
It’s like asking ‘Is the Pope a Catholic’?