Wednesday, July 14, 2004

BANKING: Riggs Helped Chilean Dictator Hide Funds

Washington's local international bank, Riggs, is in a heap of trouble as Senate investigators are set to release a report showing how the bank helped former Chilean dictator Augusto Pinochet hide financial assets when he was under house arrest in Britain.

From The Washington Post's Terence O'Hara and Kathleen Day:
The report, which includes the first account of Riggs's dealings with Pinochet, is the latest blow to an institution that once billed itself as "the most important bank in the most important city in the world." In May the bank agreed to pay $25 million in civil penalties for what federal regulators called "willful, systemic" violation of anti-money-laundering laws in its dealings with the embassies of Saudi Arabia and Equatorial Guinea. Several other federal investigations continue into the bank's activities and Riggs has hired investment bankers to explore a sale of the company.

"Riggs Bank Protected Pinochet, Report Says" [The Washington Post]


At 11:21 AM, Anonymous Anonymous said...

I have a friend who is temping at Riggs right now. She's an attorney who is reviewing documents to make sure that Riggs complies with the investigation. From what I understand, they've fired most of their employees, and there is an internal feeling that the bank is going down the drain. They actually canceled credit cards without first informing their customers that they were being canceled.



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