FSA joins forces with Treasury to tackle money laundering

ROSEMARY GALLAGHER

EFFORTS to tackle money laundering have been stepped up by the Treasury and Financial Services Authority (FSA).

Ed Balls, the economic secretary to the Treasury, yesterday published draft money laundering regulations alongside a speech to the FSA financial crime conference. Proposals include extended supervision so that all businesses in the regulated sector comply with money laundering requirements and a strengthened regime in casinos.

Balls said: "These regulations will strengthen further the UK's defences against money laundering and terrorist finance. By taking tough new measures where the risks are greatest, we will crackdown on illegal activity and help force criminals and would-be terrorists out of the shadows."

Meanwhile, the FSA unveiled a new division to tackle the risks posed by financial crime.

The financial crime and intelligence division will work with law enforcement and other regulators to identify, assess and manage criminal threats in the UK.

John Tiner, the FSA's chief executive, said: "All of us involved in the fight against financial crime have to recognise risks in this area inevitably evolve quickly and our responses have to match them. This is a continuing challenge: as we react to the most recent attacks, the criminals move on to new ways of achieving their objectives. We have to keep raising our game and the FSA is responding to this by creating the new division."

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