UPDATE 2-UK banks must do more to fight dirty money, says BoE's Woods

(Adds comment from Singapore central bank, additional quotes)

By Huw Jones and Sinead Cruise

LONDON, Sept 22 (Reuters) - Britain's banks must make the
fight against dirty money a "top priority" or risk facing more
severe fines, Bank of England Deputy Governor Sam Woods said on
Tuesday.

Global banks, including UK-based HSBC, Barclays and Standard
Chartered, face fresh scrutiny on their efforts to curb money
laundering after a cache of leaked documents showed they
transferred more than $2 trillion in suspect funds over nearly
two decades.

Woods said it was vital that banks played their part in
fighting financial crime as the "FinCEN" leaks were a good
reminder of how criminals will use the financial system for
their own ends.

"If the banks get this wrong, then costs for them are very
severe, as you have seen in recent years the big fines here in
the UK and in the U.S.," Woods told Bloomberg TV.

"They have been doing a lot but they'll need to do more, and
unfortunately this is one of those things that the job is never
done," Woods said, adding that he did not think new rules were
necessary at this point.

HSBC has said the information in the reports was historic,
while Standard Chartered pointed to investments to improve its
control procedures.

Barclays said global banks were supportive of initiatives to
improve transparency of how money was held around the world and
which should make client due diligence "a lot easier".

Global spending on anti-money laundering (AML) software was
close to $1.5 billion at end-2019 and is expected to exceed $1.9
billion by end-2023, according to Boston-based financial
research and advisory firm Aite Group.

"We have seen that growth ourselves," added Rachel Woolley,
global director of financial crime at Fenergo, which provides
client data management support to more than 80 banks and
financial firms including BBVA, Westpac and BNP Paribas.

"With digital operational resilience a key focus for
financial institutions, not to mention the potential wave of AML
reform in response to the FinCEN leaks, it stands to reason that
significant investment will be made in technology as banks
attempt to increase efficiencies and address increasing
compliance concerns," Woolley told Reuters.

Earlier on Tuesday, the Monetary Authority of Singapore said
it was studying media reports that Singapore banks had informed
U.S. regulators of suspicious transactions, adding that it would
take "appropriate action" based on the outcome of its review.

(
Editing by Gareth Jones, William Maclean and Alison Williams)