Prague - Banks around the world are increasing their efforts to fight the scourge of money laundering. And the Czech Republic is not falling behind.
That's what is suggested in a recent global study by KPMG Forensics, called Global Anti-Money Laundering Survey 2007: How banks are facing up to the challenge.
Financial institutions worldwide are struggling with ever increasing regulative requirements aimed at preventing frauds. According to the study, the Czech Republic wages its war with money laundering very well.
"We have learnt that for the Czech banks' management, the fight against legalization of criminal profits is of middle or high priority," stated Jimmy Helm, Partner and Head of Forensic for KPMG in Central and Eastern Europe.
Control over political actors insufficient
But KPMG has even some words of criticism for the Czech Republic. Above all, inland banks don't control and pressure political figures with a sufficient intensity. The EU is nonetheless going to change this soon with its proposed Third Money Laundering Directive.
Drug merchants, arms smugglers and other perpetrators of wide-scale criminal activities try to legalize an overall sum of one trillion US dollars of criminal profits every year, according to the estimates.
Worldwide struggle to tackle money laundering is supported by governments and various regulatory bodies.
Booming expenses
"Our survey has showed that financial institutions are taking into account the seriousness of the situation. In the last three years, the banks have been granting more money to precautions, the highest management got involved in the efforts, and there have been a tight cooperation with governments, regulatory boards and control organs," explained Helm.
Costs of bank protection measures tend to rise. In the past three years, they have increased by 58 percent. According to experts, though, it is going to be only 34 percent over the next three years. The main part of the financial burden is transaction monitoring and staff training.
When asked about the issue, nine out of ten banks said the burden is either acceptable or should be raised.
