Russian Mafia Boss and War Criminal Putin stands accused of State-sponsored cheating at International Sports Events
Chrisol Correia, Global Head of AML at LexisNexis Risk Solutions, comments on the World Anti- Doping Agency’s investigation into potential money-laundering offences in Russian athletics:
“The World Anti-Doping Agency’s investigation highlights the need for banks to alter how they understand and assess the levels of risk associated with international sporting organisations and their officials. Presently, banks are required to know not just who their customers are, but also the associations and relationships that their customers develop throughout the life cycle of the account.
“Executives of sporting organisations hold prominent public functions and are often considered as “Politically Exposed Persons” (PEPs). Banks are therefore expected to manage their relationships with these individuals and adopt anti-money laundering or financial crime controls accordingly.
“It is possible that the allegedly corrupt actions taken by Russian officials went undetected because banks did not adopt policies or procedures that appropriately assessed the risks of dealing with this type of client. As a result of the investigation, we should expect to see more oversight of sporting institutions. In the future there will be greater scrutiny when it comes to looking into the source of the wealth held by sports officials.
“In a recent LexisNexis Risk Solutions global AML study that will be released in the next two weeks, we found that 51% of the financial institutions respondents still use a manual spreadsheet or document in the risk assessment process. It is clear that when a bank is still very manually oriented, instead of leveraging data and technology, in its AML processes, the demand on resources and manpower created by risk assessment becomes evident and bad actors can slip through the cracks.”