City faces corruption crackdown as IMF investigates wealthy countries

G7 nations plus Austria and Czech Republic face tests to prevent money laundering

The City of London will come under the spotlight of the International Monetary Fund as part of a crackdown on corruption that will investigate whether Britain and other rich countries are taking tough enough action against bribery and money laundering.

In a hardening of its approach, the IMF said it needed to look at those giving bribes and financial centres that laundered dirty money as well as improving the existing clampdown on wrongdoing in poor countries.