Dropping the account of a politically exposed person (PEP) can be an administrative burden for banks requiring thorough documentation to satisfy bank examiners. But banks looking to close an account for a particularly sensitive PEP need a much more involved plan of action to stem any potential reputational damage from customers and the media, say consultants. For instance, when Riggs Bank hired David Caruso in 2003 to head its beleaguered anti-money laundering compliance division, he made a decision to close over 100 PEP accounts. Caruso quickly learned that not all PEPs are created equal. "When you're closing the account of...
print