Wednesday, January 26, 2005

Riggs Bank To Accept Plea Agreement

Riggs National Corporation, the parent of Washington D.C.'s Riggs National Bank, is on the verge of accepting a plea agreement with the Department of Justice for violating the Bank Secrecy Act for failing to report suspicious activity in accounts involving possible money laundering, according to an article in the Wall Street Journal (Jan. 26).  The article states: "The Riggs board has been presented with a plea agreement by prosecutors in which the bank would admit to one count of violating the Bank Secrecy Act by failing to file reports to regulators on suspicious transfers and withdrawals by clients, people close to the case said. Directors are expected to accept the plea and the bank would pay a fine of between $16 million and $18 million. The deal could be announced as soon as tomorrow, these people said."  As discussed in earlier posts here and here, Riggs came under federal scrutiny for possible money laundering by foreign government executives, including former Chilean dictator Augusto Pinochet, through accounts maintained that involved large-scale transfers of funds.  The article notes that the plea agreement, if it goes through, may affect the deal Riggs has to be acquired by PNC Financial, including the possibility that the transaction will be canceled. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/01/riggs_bank_to_a.html

Money Laundering | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00d8350d249453ef

Listed below are links to weblogs that reference Riggs Bank To Accept Plea Agreement: