The suspicious transactions reporting system

Abstract

Traces the history of the important obligation of financial systems and other vulnerable professions to report any suspicious transactions in order to combat money laundering. Contrasts the 1988 Statement of Principle of the Basel Committee on Banking Regulations and Supervisory Practices, which did not oblige banks to report suspicious transactions (reflecting the then deeply rooted concept of bank secrecy) with the 10 June 1991 EC Council Directive, which stipulates mandatory reporting. Shows how the institutions mandated to report suspicious transactions have widened out from banks to non‐bank financial institutions, and thence to non‐financial institutions. Outlines criteria for suspicious transactions, the work of Financial Intelligence Units, and implementation of suspicious transactions reporting in some European Union countries.