To suspect or not to suspect: Analysing the pressure on banks to be ‘Policemen’

Gauri Sinha

Journal of Banking Regulation, 2014, vol. 15, issue 1, 75-86

Abstract: This article aims to analyse the practical challenges faced by banks while filing ‘Suspicious Activity Reports’ required under the Proceeds of Crime Act 2002. The difficulty is analysed both against the lacunae in the law as well as challenges in its implementation. The recent judgment of Shah v. HSBC has made a considerable attempt to highlight and address these challenges. However, the author believes that although the judgment has clarified the consent regime (which surfaces after a disclosure of suspicion has been made), the concept of ‘suspicion’ in itself is still vague and amorphous, proving to be a negative effect on banks to effectively identify the proceeds of crime. As a result, the fundamental issues regarding over-reporting of suspicion by banks to escape legal consequences still remain.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.palgrave-journals.com/jbr/journal/v15/n1/pdf/jbr201220a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jbr/journal/v15/n1/full/jbr201220a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jbkreg:v:15:y:2014:i:1:p:75-86

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41261/PS2

Access Statistics for this article

Journal of Banking Regulation is currently edited by Dalvinder Singh

More articles in Journal of Banking Regulation from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().