Anti-Money Laundering Internal Audit Of Commercial Banks

With the development of economic globalization,the financial problems related to criminal activities has become increasingly complex due to the rapid change of technology and the globalization of financial services.Currently,three trends in international money laundering has been formed.Firstly,money-laundering organizations.Money laundering used to be caused by downstream crime groups such as theft gangs and robbers.However,such upstream criminal activities as corrupting,gambling,drug,smuggling are linked up with downstream activities,being carried out by organized criminal groups.Secondly,the specialization of those involved in money laundering,which includes those professionals(e.g accountants and lawyers)cooking the book to assist criminals and providing "legalization" procedures.Thirdly,in the wake of emerging-market countries opening up their economic and financial sectors,these countries are preferred to "help" launder money.In order to effectively prevent and combat money laundering activities,many countries have been taking actions such as promulgating some corresponding laws and regulations,increasing the punishment of law enforcement and strengthening international cooperation.Banks and other financial institutions are also actively in conjunction with the governments,which is unprecedented,to carry out anti-money laundering work in internal audit.Under the background of non-traditional security threats,economic and financial integration,in particular,increased the system risk of the international financial system.Trends like internationalization of capital flows,admixture of financial management,diversification of financial services and electronic of financial transactions make criminals more likely to laundering money.Anti-money laundering activities in various countries brook no delay.Money-laundering by criminals seriously damages normal political,economic and financial orders of a country,does harm to the credibility of financial institutions and severely affects the normal development of the society.Owing to the unique role of financial institutions in the national payment system and the process of financial assets collecting and transferring,money launderers usually select commercial banks as a first choice for money laundering.This thesis is divided into five parts: introduction,basic theory of internal audit in money laundering,analysis of a case about anti-money laundering internal audit in HSBC,internal audit experiences of domestic and foreign anti-money laundering andsuggestions of anti-money laundering internal audit in HSBC.In the introduction part,the background and significance of this thesis are mainly described.At the same time,it reviews from three sides,which are the concept of the financial risk of money laundering,the importance of anti-money laundering audit participation and anti-money laundering of commercial banks.The research ideas and methods are also included in this part.The second chapter is to describe the theory of internal audit of anti-money laundering,including the concept of money laundering and anti-money laundering,the internal audit of bank anti-money laundering and the theoretical basis of the internal audit of bank anti-money laundering.The third chapter,analysis of a case about anti-money laundering internal audit in HSBC.The main contents contain the basic situation of HSBC,the money laundering case,the existing problems and the causes of HSBC in the anti-money laundering internal audit.The fourth chapter is the internal audit experiences of foreign anti-money laundering,which compares bank's anti-money laundering audit experience in German and France,helping find out valuable references of two countries' anti-money laundering.At the same time,make comparisons with HSBC's existing system and figure out the deficiencies of its anti-money laundering mechanism.The fifth chapter recommends some approaches to perfect the HSBC Bank anti-money laundering internal audit.In view of the main problems,corresponding improvement measures are put forward: Constructing reasonable anti-money laundering internal audit institutions,valuing anti-money laundering performance,making customer money laundering risk level of management more detailed,improving the comprehensive quality of the auditing individuals,designing reasonable internal audit procedures and strengthening audit efforts on new bank transactions.The purpose is to improve the anti-money laundering HSBC internal audit effects gradually,prevent the illegal elements of money laundering activities,establish a good image of the bank and achieve long-term stable bank operations.