GLOBAL STANDARDS FOR

MONEY LAUNDERING
PREVENTION
Hans- Peter
Bauer
Martin Peter

Presented by:
Muhammad Iftikhar Arshad - Asif Mumtaz Muhammad Adnan

Wolfsberg
(2002)

Principles

These principles are essentially global anti

money laundering guidelines for private banking.
Principles are drafted by Citibank, JP Morgan,
Chase, HSBC, Barclays, Banco Santander, Central
Hispano, Societe Generale, Deutsche Bank, ABN
AMRO, Credit Suisse & UBS.
All these banks agreed on and committed
themselves to these principles.

Principles

Banks will endeavor to accept only those clients

whose source of wealth and funds can be
reasonably established to be legitimate.
The bank will establish the identity of its clients
and beneficial owners prior to establishing
business relationships with such persons.
The private banker is responsible for updating the
client file on a defined basis and/or when there
are major changes
The bank will have a written policy on the
identification of, and follow-up on, unusual or
suspicious activities. This policy and/or related
procedures will include a definition of what is

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Neither the private banker, nor any other bank

employee, will provide clients with any assistance
with the knowledge that such assistance will be
used to deceive authorities, including tax
authorities.
There will be regular management reporting
established on money laundering issues.
The bank will establish a training program on the
identification
and
prevention
of
money
laundering for employees who have client
contact, In addition, employees will be informed
about any major changes in AML laws and
regulations.

Why

Everybody committing financial crimes is using

banking system as helping source specially in
money laundering case.
To show out that private banking sector is also
involved in taking initiatives against money
laundering
To imply same standard in banks for prevention
of money laundering

How
A few points are highlighted
It took the banks four (4) sessions as well as two
days working group meeting to come to such a
result.
The
banks work closely with Transparency
International as well as some other experts of law
and finance.
All banks were driven by the recognition that for
top banks in the private banking business and
there should be no competition on money
laundering standards.

Core Topics of Principles

These principles are global anti money

laundering guidelines for private banking sector,
that committed themselves to these principles.
Bank policy will be to prevent the use of its
operations for criminal purpose.
Banks have to apply all these principles in each
and every branch location.
For the first time private banks take steps, by
stating clearly that private banks are committed
to fight against money laundering.

Wolfsbergs principles were received well by

many regulators and financial bodies. Principles
were cited as an example of how to deal with
money laundering in finance sector. Further more
UK Financial Services Authority (FSA) quoted
principles as an influential factor against money
laundering.