MOSCOW - President Vladimir Putin called on Friday for urgent action to clean up Russia's banking system, which he said was being used for criminal ends, after the murder of a top banker who waged a war on money laundering.

Russian investigators work at the site of an attempt on the life of the first deputy chairman of Russia's Central Bank Andrei Kozlov in Moscow September 13, 2006. [Reuters]

Speaking at an emergency meeting of bankers and law enforcement officials, Putin said the suspected contract killing of central banker Andrei Kozlov showed "the use of banking institutions for criminal ends is, unfortunately, continuing."

Putin's comments in the Black Sea resort of Sochi implied he too believed Kozlov, a first deputy chairman of the central bank, had paid the ultimate price for leading the fight on money laundering.

Kozlov, 41, a father of three who had been closing down dozens of crooked banks, was gunned down by assassins on Wednesday night outside a Moscow sports stadium. His driver died on the spot. Kozlov succumbed to his wounds early on Thursday.

"In my view, it is a manifestation of the intensifying situation in the struggle against crime in this area," Putin said of Kozlov's death. Putin said Kozlov had "worked in one of the toughest areas -- he worked with so called problem banks."

Putin called for an inter-agency task force comprised of prosecutors, tax inspectors, central bankers and the security services to be set up to crack down on financial crime.

Russia's bankers, meanwhile, offered big rewards, without giving a sum, if the killers were found. But despite launching a major manhunt police said they had no firm suspects.

The killing of Kozlov, who was also well respected in Western financial institutions, was the highest profile assassination in Moscow in Putin's six years in power.

In his comments, Putin zeroed in on the worst features of Russia's post-Soviet economy that is rampant with corruption.

Many companies work hand-in-glove with fly-by-night banks to operate "slush funds" from which they pay workers cash in hand, bribe officials for contracts and avoid tax liability.

"We are witnessing the laundering of billions of roubles every month as well as transfers of vast funds abroad," Putin said. He said laundered money was being used for "massive bribes, for criminal ends in the wider sense of the word."

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