Money Laundering, Terrorism and Financial Institutions - USA Patriot Act Monitor

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7/21/2004 USA PATRIOT Act Monitor News Release: Report Slams Riggs Bank on AML Implementation, Federal Regulators on Enforcement
The Riggs Report, as the recent report on the Riggs Bank issued by the Minority Staff of the Permanent Subcommittee on Investigations is now generally called, describes the AML failures of the bank but also assigns considerable blame to the OCC, the bank's primary regulator, for being lax in its supervision. The OCC is faulted for (1) accepting assurances from Riggs that it would correct its AML deficiencies and thereby delaying enforcement actions, (2) ignoring the pleas of an OCC staff examiner who encouraged the agency to look more closely at the bank's practices, (3) failing to include significant discussion of AML deficiencies in several Reports on Examination given to the bank's board, (4) not initiating penalty proceedings until press reports called attention to accounts of certain political figures at the bank, and (5) allowing a former OCC examiner who became employed by Riggs to attend meetings between the agency and the bank regarding its AML problems. The Minority Staff Report, Money Laundering and Foreign Corruption: Enforcement and Effectiveness of the Patriot Act: Case Study Involving Riggs Bank, suggests a number of improvements that must be made by the OCC and other bank regulators. Some suggestions and observations in the Report will undoubtedly influence examiners in upcoming reviews. The Report and its implications will be the subject of an in-depth analysis in the August issue of the Monitor

The USA PATRIOT Act Monitor and the news releases prepared by the Monitor staff are services of the Civic Research Institute, publisher of Money Laundering, Terrorism, and Financial Institutions, by Raymond Banoun and John Ensminger. Contact and subscription information may be obtained at or by calling the Civic Research Institute at 609-683-4450 (fax: 609-683-7291).

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