Ever tried to open a bank account? How much documentation did they ask you for to prove your identity? You may only want to deposit a few hundred quid, but you are treated as a potential gangster. ‘I’m afraid we have to do this Sir to prevent fraud. However, if you are an important Nigerian, such as the former governor of the oil rich DeltaState, who has been defrauding his poverty stricken electorate, ( most of whom have to exist on a dollar a day ), British banks such as RBS, Barclays, HSBC and Nat West will happily launder your money with few questions asked. DittoNigeria’s former president, Mr Abacha.
From HSBC USA, HSBC London, HSBC Swiss private banking this once great bank, headed by Stephen Green (who wrote a book entitled ‘Serving God – Serving Mammon- reflections on money and morality in an uncertain world) has been condemned by the US Currency Regulator and a US senate committee, for handling stolen funds looted by various African dictators. Lord Green was in charge of HSBC for most of this period, and has now been co-opted by David Cameron onto the treasury team deciding how to reform British Banks!!
By the early 1990’s, money laundering through banks was so rife that in 1993 a European Directive was introduced to try and address the issue, and was adopted into UK law. Under it banks are meant to make stringent checks on all transactions, and report any suspicious activity to the authorities.
The Financial Services Authority has the power to prosecute money launderers – but has never prosecuted a banker, although small fines have been imposed on one or two banks eg. RBS, 82% of which is owned by us, the tax payers. ( Google Global Witness for more in-depth information ).
Given the ‘dog eat dog’ culture of the City of London, and the ease with which money can be laundered and tax avoided through British Overseas Territories such as the Cayman Islands and Gibraltar, together with Crown Dependencies such as Jersey and Guernsey, it is hardly surprising that so much illegal financial activity gets channeled through London’s financial centre.
Because of these tax havens, the British electorate is being squeezed (increases in taxes, cuts in public services ) while tens of billions of pounds of taxes owed by the rich, go unpaid. Further, these secret tax havens hold an estimated one trillion pounds of laundered money from developing countries – ten times what they receive in aid!
Sadly, one could continue for ever on this theme eg. the fixing of the Libor interest rate costing small businessess and mortgage payers billions of pounds of interest which need not have been paid, the £290,000,000 fine by the US authorities of HSBC for laundering Mexican drug monies, Standard Charters’ £217,000,000 fine for laundering Iranian money etc. etc. etc. Note; if you or I ran a business and were found to be laundering money we would receive a lengthy jail sentence. In contrast, if you are a top banker, you merely ‘trouser’ a huge pay off, and are in the running to become the next Governor of the Bank of England!
Meanwhile, many so called financial experts writing in those bastions of democratic freedom – the National British press – are saying ‘stop bashing the bankers’. No wonder our expense fiddling MP’s have been trying to surf the wave of glory made by our great GB Olympians, in an effort to divert attention away from the greed and corruption at the centre of power.
If governments of whatever colour were serious about getting the British economy out of debt, they would be ensuring that all British tax havens would be closed down immediately or, be compelled to open up every account held there to the British tax man. But clearly its not in their financial interest.
They prefer to cut a couple of billion pounds off the welfare budget, rather than upset their super – wealthy friends by forcing them to pay their fair share of taxes.