Bankers say UK exposure to TBML threats will increase post-Brexit

Trade-based money laundering (TBML) empowers criminals to run free post-Brexit is the title of a new report that concludes that the UK’s vulnerability to TBML will increase as it increasingly focuses on trade with developing countries.

Based on interviews with senior TBML experts at large UK banks and backed by a structured literature review, the report finds that both banks and law enforcement struggle to prioritise TBML intelligence discovery due to deficient skills, resources, technology and lack of strong regulatory stimulus.

Underestimated risks

The regulated sector calls for the UK anti-money laundering (AML) reform that would better incentivise TBML deterrence the report published in the Journal of Money Laundering Control finds.

It also finds that the government underestimates the money laundering risks while trading with high-risk jurisdictions post-Brexit.

Banks, enforcers and government

The report’s author, Mariola Marzouk, says the findings should alert UK banks, law enforcement and the government who will collectively bear the responsibility to effectively manage TBML while enabling smooth trading.

Marzouk is a doctoral student at the University of Portsmouth and AML technology and market consultant.

 

 



Categories: Trade Based Financial crimes News

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