Although they help banks and other financial institutions safeguard their reputations, anti-money laundering regulations are costly and have...

Although they help banks and other financial institutions safeguard their reputations, anti-money laundering regulations are costly and have very little effect on eradicating some types of crime, according to a study published by the Swiss Banking Institute. The institute also suggests that the introduction of money laundering prevention measures has had little influence on international competition. The report, which compares anti-money laundering practices in Switzerland, Singapore and Germany, was commissioned by the Association of Swiss Commercial and Investment Banks. According to the report’s authors most Swiss bankers believe the price they pay to implement the regulations is too high when compared to international competitors, but they are more interested in a level playing field than in efficiency. Bankers in the three centres were found to be opposed to the idea of regulatory competition, as they were concerned that it might give their competitors an edge, according to the report.