Shostack + Friends Blog Archive


Return on (Other People’s) Investment

‘The Australian’ has a great story on “Focus key to crack money-laundering.” Its focused on the testimony of a British expert on “money laundering” and includes:

Last year, British banks, accountants and lawyers made some 200,000 reports to the authorities. But in the three years since Britain’s law was implemented, there had been only one successful prosecution in 2003.

“A common picture is emerging across the world that banks and accountants are complying with their obligations, but little seems to be done with the information.

It cost the British financial services sector pound stg. 60 million (AU$146 million) to just set up the compliance system.

I don’t know what else £60 million could buy, but one prosecution, and the privacy of 200,000 violated? Seems like a poor use, even if it’s other people’s money. Maybe they should have offered some huge rewards with it instead.

Previously on this topic, “FinCEN Effectiveness,” “The Cost of Following the Money” and
The Remittor and the Money Launderer.”