New tool to combat money laundering

A new service to help banks combat money laundering by verifying the identity of potential new clients was launched yesterday.

Noble Street will provide "know your customer" services to British banks, insurance companies, lawyers and others who want to check up on clients. Using a network of more than 200 field agents in more than 150 countries and its own computer database, the company will provide individual verifications of the stated identity of clients, to route out drug traffickers, terrorists and fraudsters.

The checks will take between 24 hours and a week depending on the work needed.

Noble Street was founded by Richard Marston, a Scotland Yard detective for 33 years, and Mike Burkhold, an American businessman. It will initially offer services to UK businesses before expanding sales to other countries.

Mr Marston said: "It is easy to launder money through London. That's not to say that it's easier here than elsewhere or there is wilful blindness here. It's just that London's a very big financial centre, so large amounts of the world's dirty money are bound to pass through it."

From 1 December, the Financial Services Authority will assume new powers, allowing it to fine financial services firms with lax controls and even lead criminal prosecution of such companies.