Global Witness claims that by accepting corrupt heads of state and their families as customers, without verifying carefully that the origins of their monies are not illicit, banks are assisting them in enriching themselves. As required by national anti-money laundering laws, banks need to ensure due diligence of clients potentially having access to state monies and that are exposed to a greater risk of corruption and bribery.

The report gives recommendations on what needs to be done by governments, regulators and banks to avoid this malaise in the international banking systems and calls for money laundering laws to be tightened, as well as reforms to the financial regulatory system.

In a letter to UK Prime Minister Gordon Brown, Transparency International highlighted the efforts needed to strengthen the work of the International Monetary Fund (IMF), Financial Action Task Force (FATF) and other international governmental organisations. This should include publishing information and assessments of countries’ compliance with anti-money laundering and transparency standards, and require that financial institutions take this information into account.