Are regulators doing enough to rein in bank money laundering?

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http://www.washingtonpost.com/business/economy/are-regulators-doing-enough-to-rein-in-bank-money-laundering/2012/08/07/938c0f9e-e0aa-11e1-a421-8bf0f0e5aa11_story.html

Regulators are catching flak for not acting sooner to stop banks that helped Iran flout U.S. sanctions. This week, the state of New York said London-based Standard Chartered Bank concealed $250 billion in Iranian transactions, violations that persisted for nearly a decade.

A number of international banks, including Lloyds, Barclays and Credit Suisse engaged in similar behaviors, but it took years before regulators put their foot down. State and federal agencies routinely audit banks to ensure compliance with anti-money- laundering rules, but institutions continue to skirt the law.


Critics say enforcement actions have fallen short of serving as a deterrent, especially since the punishments resulted in fines but no jail time. Policing the world’s banking system, others say, is no small task. And regulators are doing as much as they can in the face of rampant deception.

Indeed, some federal regulators wanted to move slower on Standard Chartered to make sure they had the strongest case possible.