Private banks score well on AML

Russian oligarchs are subject to extremely rigorous background checks before private banks will take them on as clients, the FSA found during its review of the sector's anti-money laundering controls at the turn of the year. The study notes that when deciding whether to take on a client, private banks tend to make an association between financial crime and reputational risk. The regulator says it would have concerns if the alignment meant that the financial crime threat was subordinated. It would also like to see more proactive adjustment of risk profiles and systems and controls in response to changes in the business model, while noting that private banks have already been using the risk-based approach to AML for some time.