Money Laundering Bulletin

These anxieties lead many Latin Americans to seek to protect their wealth by transferring it to the perceived more stable banking systems in Europe and the United States. In turn, to combat capital flight, some Latin American governments restrict the outflow of funds by imposing currency exchange restrictions. Venezuela is an example.

In the recent case of Shah v HSBC Private Bank (UK) Ltd [2009] EWHC 79, Mr Justice Hamblen accepted that it is arguable that a banker’s duty of care is not completely excluded by the anti-money laundering provisions in Part 7 of the Proceeds of Crime Act 2002 (POCA). Andrew Keltie and Charles Thomson of Baker & McKenzie examine the judgment and its implications.

Timon Molloy, Editor

China works hard to prevent any official recognition of the government of Taiwan (formal name “Republic of China”), says David Coates. Consequently for those not already involved with the island on AML issues or in the IT sector there may be a blank space filled by some outdated stereotypes. The spectacle of the ongoing trial of the former President Chen Shui-bien for embezzlement and money laundering may lead to an overly alarmist view of the financial risks in dealing with financial institutions on the island. This article attempts to give a balanced assessment of already coming into view. the current AML scene and highlight potential changes

No official global body exists to help assess the quantity and quality of anti-money laundering schools, colleges and consultants throughout the world, writes Alan Osborn, but the number must certainly run into the thousands - and by far the majority are in the US. Unsophisticated laundering may leave clear tell-tale signs, which can be quickly picked up by automatic monitoring systems, but profit-oriented criminals and terrorist financiers have become more adept at hiding their trails in recent years and more is demanded of those who combat them. How far can successful AML techniques be taught? Who does the teaching, and where?

A major strengthening of Canada’s regulations and programmes to fight money laundering and terrorist financing occurred last year and will continue in 2009, says Alan Osborn, going a long way towards erasing the worryingly negative impression left by the 2007 report by the Financial Action Task Force (FATF).

Last month, writes Sue Grossey, I reviewed some of the books I have read recently, which described, discussed, touched upon or even laughed at money laundering. In case I have whetted your appetite, here are some more.