THOUGHT

ISSUE 1
Fighting financial crime
Is your organisation an unwitting participant in financial crime?
A BUSINESS-TO-BUSINESS MAGAZINE
Organised crime costs the UK at least £24bn a year, according to
the Home Office. Tackling financial crime and ‘trade-based money
laundering’ (TBML) – an all-encompassing term for the wide range
of schemes used by criminals to disguise the origins of money
and integrate it into the formal economy – is a major concern
for governments globally.
Because of the magnitude of the problem,
your organisation must be vigilant and
report any suspicious activity, to avoid risking
reputational damage and potentially facing
criminal proceedings.
What’s being done about it?
The UK Prime Minister recently hosted an anti-corruption summit,
gathering world governments, law enforcement agencies and
businesses where they announced a global plan to recover assets
lost to financial crime. Although the first of its kind, the summit will
reconvene each year to continue the global fight against corruption.
As well as this, a number of organisations have been set up in
partnership with banks including Barclays to combat money
laundering and tackle the use of the financial system for terrorist
financing and other crimes. These include the Financial Action
Task Force (FATF) and Joint Money Laundering Intelligence
Taskforce (JMLIT).
The JMLIT has found that global corporations exporting dual-use
goods – those that can be used for both civil and military purposes
such as pharmaceuticals, electronics, and raw materials – are
particularly vulnerable to trade-based money laundering.
If you are a tech business and you receive an order for 300 laptops
from a contact in the Turkey-Syria border area, you would be right
to raise your eyebrows – and indeed it is your responsibility under
EU law.
But financial crime is often harder to spot than that – especially as
no single activity on its own is a clear indication of illegal activity.
Put on your investigator’s hat
To make sure your organisation doesn’t inadvertently get caught up
in this type of activity, it’s vital to carry out regular reviews of who
you’re doing business with.
Try putting on your ‘financial crime investigator’s hat’ for just five
minutes every day. Have a look at recent business transactions and
find out where they are coming from. In a normal trade transaction
there’s a clear connection between the payment and the buyer, so
consider whether there is anything strange about the relationship.
Although it’s worth remembering that for genuine tax efficiency
some businesses will use different parts of their business to buy
goods, and may structure supply through subsidiaries, sometimes
it pays to be suspicious.
What to do if you’re concerned
Take a look at the National Crime Agency resources
website – www.nationalcrimeagency.gov.uk or visit
www.barclayscorporate.com for additional hints and tips.
John Pitchford
Head of Shropshire Corporate Banking
Mobile: 07775 544399 *
E: john.pitchford@barclays.com
DSDGSLFD
FDFDSFS
FDFJ IFFDF
Ddfg dfgdfgfg sdf
sddfdfdfd fdfgfgffdf
fdgbdf gugioz xhg
djsygc dygcdgfdfb
Make Shropshire Business part of your daily life
Log on to www.shropshirebiz.com for the
latest news, features, analysis and blogs
revolving around the county’s business scene
in this new and unique Shropshire B2B portal
We’ve got sections devoted to manufacturing,
legal and finance, commercial property,
farming . . . plus all the achievements and
appointments of the members of the county’s
business community
This is an editorially-led website – and we
want to hear from you
Send your stories and pictures to
editor@shropshirebiz.com for consideration
*
Please note the number quoted is a mobile.
Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is registered in England and authorised and regulated by the Financial Services Authority (FSA No. 122702).
Registered Number is 1026167 and its registered office 1 Churchill Place, London E14 5HP. BM411040. October 2016.
For advertising enquiries, contact
sales@shropshirebiz.com