ABSTRACT
This chapter explores the extent to which the anti-money laundering framework has the potential to prevent corruption. It considers the anti-corruption conventions and how they accommodate the anti-money laundering (AML) discourse within their overall framework. The chapter is followed with an examination of due diligence procedures including those in relation to politically exposed persons (PEPs) that banks are expected to follow to counter money laundering. Using the UK Financial Services Authority's 2011 Report on the managing of money laundering risks by banks and citing the HSBC money laundering case, the chapter argues that AML legislative measures are of limited use only since they are dependent on rigorous application by the banks. It focuses on the link between corruption, money laundering and bank secrecy and examined the effectiveness of the widely adopted AML standards. This chapter argues that banks should move away from seeing themselves as profit generating entities willing to take on high-risk ventures.
