Recognising and reporting money laundering

In the second of a two-part article Andrew Jackson of Kroll Associates UK Ltd examines how risk exposure to money laundering can be quantified and reduced. In particular he considers the implications of the new Data Protection Act on ‘know your customer’ policy.

The nature and extent of risks

It must be assumed that all banks and financial institutions risk exposure to money laundering activity. Money laundering is rife – we know that and so, taking into account the types of business carried on by the financial institution, risk exposure can be quantified to some degree.