More than 60% of respondents in a UK survey of banks setting up e-banking did not consider implementing new anti-fraud measures, says international money laundering expert Rowan Bosworth-Davies.
Speaking at a seminar hosted by Unisys and DST Catalyst in Sandton, Bosworth-Davies said the degree of anonymity e-cash and other forms of cyberbanking would permit is a natural source of cover for the money launderer.
"The likelihood of law enforcement agencies being able to scrutinise such transactions is very small," he adds.
Based in the UK, Bosworth-Davies is the principal consultant with the Unisys Financial Compliance group, and is widely recognised as an expert in providing education and consulting services in the field of fraud prevention and anti-money laundering awareness programmes.
An author, lawyer and a former Fraud Squad detective at New Scotland Yard, he ran the investigation division of one of the UK`s financial self-regulating organisations for two years.
Bosworth-Davies says it has been estimated that global money laundering of illicit capital amounts to $1 trillion a year, or 5% to 7% of global gross domestic product. However, he adds that no one knows the real figure.
"Organised crime is the leading source of the largest proportion of dirty money entering international financial channels.
"Tax evasion and capital flight remain the major source of `submerged` fiscal concern for international governments and regulators.
"In many cases, countries have found that the sources of significant amounts of cash and other payments flowing into their countries from the former Soviet Union and other East European countries cannot be accurately identified."
In Southern Africa, few countries have criminalised money laundering, SA being an exception. In this region, common methods include illicit commodity trading, currency smuggling, real estate speculation and the widespread development of private banking systems.
Bosworth-Davies says Unisys is working on a solution to identify suspicious banking transactions.
"The aim is to give a bank the ability to demonstrate that it is operating within best practice with the law." The solution is on the verge of going live in Europe.
However, it does not stop money laundering, which is here to stay, he adds.
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