The former Conservative Party leader insisted he would support a “very strong look at” sanctions on Russian finance that flows into Britain.
Speaking on the World at One on BBC Radio 4, Mr Duncan Smith said “further tightening up of controls” should be considered.
Asked if the UK should bring sanctions “unilaterally” and tackle its status as the “capital for laundering Russian money”, the MP for Chingford and Woodford Green suggested it would be a positive step.
“I certainly wouldn’t be against the UK actually having another very strong look at, and possibly implementing, further tightening up of controls and sanctions on Russian money that flows in here,” he said.
Iain Duncan Smith said sanctions on Russian money flowing into the UK should be looked at
So much of it anyway is probably quite corrupt
Iain Duncan Smith
“So much of it anyway is probably quite corrupt.”
He added the “single biggest pressure” on the Kremlin currently was its finances due to its involvement in several conflicts including Syria, eastern Ukraine and Crimea.
He said: “They’re doing it on the back of what is essentially close to a third world economy. In other words the oil prices have collapsed and Russia is under some pressure.”
Countries that support and oppose the missile strikes in Syria Mon, April 10, 2017
European countries have been broadly supportive so far as President Trump ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched
AFP/Getty Images 1 of 7
SYRIA OPPOSES: President Bashar al-Assad's office denounced the U.S. strike as 'reckless, irresponsible behavior.'
Get Quotes on Home Insurance
Earlier this year, Deutsche Bank was fined more than £500million after British and US regulators found that failings at the German lender led to £7.9billion ($10billion) being laundered out of Russia in a manner “highly suggestive of financial crime”.
The UK's Financial Conduct Authority slapped the bank with a record £163million penalty for anti-money laundering shortcomings and exposing the UK's financial system to criminal activity.
The New York State Department of Financial Services fined Deutsche Bank £340million for the abuses, which it says took place at its Moscow, London and New York offices.