The local branch of global accounting firm KPMG has called on Bermuda?s business community, regulators and government to continue their efforts to prevent money laundering here, but also to raise more public awareness about the issue. KPMG Bermuda recently conducted a seminar for local public and private sector representatives to reveal the findings of a global anti-money laundering (AML) survey commissioned by KPMG in the UK. The survey sought to determine whether the increasing globalisation of banking groups and international regulatory co-operation is resulting in increased consistency in the approach to anti-money laundering.

According to Malcolm Butterfield, managing director of Financial Advisory Services (FAS) at KPMG Bermuda, while ensuring the Island?s AML laws and regulations are as effective as possible remains a priority, the entire community should also be made more aware of the issue.

?There are billions of dollars in money laundering schemes in effect worldwide and we cannot be naive to think that Bermuda won?t be targeted,? he said. ?A collaborative effort between the police, government and the public is required to combat it.?

KPMG UK commissioned an independent research agency, Consensus Research, to conduct a telephone survey of banks in the UK covering the major areas of banking: retail, corporate, private, investment and wholesale. Representatives from the firm?s local office shared the findings of the survey with individuals from the Bermuda Monetary Authority, the Ministry of Finance and a cross-section of Bermuda?s law firms, banks and local and international companies.

?The survey results are useful for us in Bermuda since they can help the regulators, financial institutions and companies here compare what they are doing with what is going on by global banking organisations based in the UK,? said Mr. Butterfield. ?The point is to help us all identify from a due diligence perspective where we are today and how best to move forward to prevent money laundering and improve compliance. That process is not just about discovering dubious activity but its about maintaining the integrity of the jurisdiction.?

The KPMG UK survey results showed that AML issues have grown in priority among the responding banks and that related compliance costs have risen by an average of 60% over the past three years. Enhanced transaction monitoring was the main factor behind the cost increases as well as AML training for staff.

?Basically financial institutions in the UK are allocating more resources to developing robust anti-money laundering strategies and procedures, in terms of finances, people and management time,? said Mr. Butterfield. ?The actions taken in this regard in Bermuda by the regulators, private sector and government in recent years are definitely in line with that trend. I believe we now have the opportunity to go one step further and use initiatives driven by a central body, perhaps something like the NAMLC (National Anti-Money Laundering Committee), to raise greater public awareness about the issue and the role the wider community should play in combating money laundering, in the interests of all of us and the jurisdiction.?

Mr. Butterfield directs a range of corporate finance, corporate recovery and forensic services offered by the FAS team at KPMG Bermuda, including helping clients to develop effective anti-money laundering systems and policies.

Interest in forensic services is apparently increasing locally, and Bermuda?s professional services firms are offering corporate clients broad assistance covering issues such as fraud investigations, regulatory compliance, fraud risk and dispute intervention and risk management strategies.