Arabs-banking.

Commercial Banks Negligent over Money Laundering, Study Says

A recent study accused commercial banks in the Arab world and particularly in Egypt of negligence in money-laundering control and investigation, the pan-Arab daily ASHARQ AL AWSAT reported Tuesday. The study stressed that bank employees lack the necessary training for mechanisms that would allow them to detect money-laundering operations. The study criticized the current banking system, saying that it should be developed to address money-laundering issues. Commercial banks play a crucial role in fighting money-laundering operations since they are the main link that connects money-laundering operations to national economies. The study was conducted by an Egyptian researcher Safaa Mohammed Salim for her Master's degree at the Suez Canal University in Egypt.

The study warned that electronic banking (e-banking) facilitates illegitimate banking operations, due to the lack of direct contact between clients and bank employees. Money laundering operations through e-banking are harder to detect, due to unavailability of documentation that could be traced or investigated, the study noted, according to ASHARQ AL AWSAT. The study called for the creation of a strong legal framework as well as cooperation between financial and legal institutions and security authorities for fighting money laundering in Arab countries.