London system (London system). In connection with money laundering, banks do not decide on their own how to deal with suspicious cases, but report suspicions to the authorities. This way, a bank does not run the risk of being held accountable itself. – On the other hand, it has been shown that the authorities are overwhelmed by the volume of reports, and that reported suspicious cases are therefore insufficiently investigated. It is therefore considered more appropriate to assign the detection of money laundering to the individual bank (from a supervisory perspective). – See observation note, Financial Action Task Force on Money Laundering, threat analysis, money, dirty, money transfer intermediary, account, false, account disclosure, account freeze, customer data information requirement, offshore financial centers, outsourcing, underground banking.

English · Stand

In connection with money laundering, banks do not decide on their own how to deal with suspicious cases, but report suspicions to the authorities. This way, a bank does not run the risk of being held accountable itself. – On the other hand, it has been shown that the authorities are overwhelmed by the volume of reports, and that reported suspicious cases are therefore insufficiently investigated. It is therefore considered more appropriate to assign the detection of money laundering to the individual bank (from a supervisory perspective). – See observation note, Financial Action Task Force on Money Laundering, threat analysis, money, dirty, money transfer intermediary, account, false, account disclosure, account freeze, customer data information requirement, offshore financial centers, outsourcing, underground banking.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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Merk, G. (Hrsg.): „London system (London system). In connection with money laundering, banks do not decide on their own how to deal with suspicious cases, but report suspicions to the authorities. This way, a bank does not run the risk of being held accountable itself. – On the other hand, it has been shown that the authorities are overwhelmed by the volume of reports, and that reported suspicious cases are therefore insufficiently investigated. It is therefore considered more appropriate to assign the detection of money laundering to the individual bank (from a supervisory perspective). – See observation note, Financial Action Task Force on Money Laundering, threat analysis, money, dirty, money transfer intermediary, account, false, account disclosure, account freeze, customer data information requirement, offshore financial centers, outsourcing, underground banking.“. In: Finanz- und Wirtschaftslexikon. https://www.gerhardmerk.de/london-system-london-system-in-connection-with-money-laundering-banks-do-not-decide-on-their-own-how-to-deal-with-suspicious-cases-but-report-suspicions-to-the-authorities-this-way-a-bank-does/ (Stand: 25.07.2023).

Die von Universitätsprofessor Dr. Gerhard Merk begründete Sammlung wird seit Herbst 2014 von Professor Dr. Dr. h.c. Eckehard Krah redaktionell fortgeführt und um neue Begriffe ergänzt. Sollten Sie Fehler entdecken oder sonstige Hinweise haben, schreiben Sie an: info@ekrah.com

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