Disclosures of financial irregularities hit record high

Figures released from the National Criminal Intelligence Service (NCIS) show that suspicious financial transactions could be on the increase.

The Economic Crime Unit (ECU) of the NCIS has said that they have received over 18,000 disclosures regarding money laundering due to growing awareness of the severity of the problem.

By law, individuals can report suspicions of irregularities without it being treated as any form of a breach of confidentiality. Those convicted of money laundering can face up to 14 years in prison, in addition to an unlimited fine.

Head of the ECU, Andy Blezzard, said that he believed the increase in the amount of disclosures being made was thanks to the efforts of authorities and trade bodies in raising the profile of the problem. In addition, extensive press coverage of several large money laundering cases has further promoted the issue.

However, figures show that certain organisations are slow to reveal reports of financial irregularities, with registered banks, solicitors and accountants coming under criticism for their apparent reluctance to come forward with disclosures.

Mr Blezzard added: “Face to face contact with customers has reduced for banks and other financial institutions as more people have moved to telephone and postal banking. This is likely to continue with the spread of the internet, the establishment of call centres and greater automations.

“The identification of suspicious transactions is therefore an increasing challenge for banks and other institutions.” (CL)