Accurately assessing the compliance risks of customers with assets in secrecy jurisdictions can be difficult in the best of situations. Whatever you try, investigations inevitably run up against the laws that veil financial ownership and activity from prying eyes. But compliance officers may do well by borrowing from the pages of law enforcement agents and private investigators in performing due diligence on clients with offshore holdings, said Paul Marks, owner of KYC Offshore, a boutique investigative services firm located in Jersey, a major offshore financial center about 15 miles off the coast of France. "The vast majority of people who...
Bankers are more frequently rejecting law enforcement requests to keep open accounts held for the targets of criminal probes despite assurances that the institutions won't be penalized for subsequent transactions, say sources.
In the push by global governments for greater financial transparency and greater privacy guarantees, large financial institutions are left struggling to reconcile these two competing principles. The conflict is most striking for banks dealing with so-called secrecy jurisdictions.
Getting all the necessary know-your-customer information from foreign nationals who are private banking clients can be a daunting task, in part because many of the wealthy individuals who use these services are highly secretive.