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. Even when working with those who grant free access over their personal and financial information, relationship managers often must navigate through a complicated maze of investment vehicles within the private account, including corporations, limited liability companies, trusts and bearer shares. The client also may have a business or corporate account that accepts money from and doles out checks to cash intensive businesses or operations in higher-risk...
Greg Ruppert, a legal attaché for the Federal Bureau of Investigation in Berlin, spoke to Larissa Bernardes about the importance of getting the who, what, where, when and why of a customer's transactions.
Even as banks buy and operate expensive filtering systems to block transactions from individuals and companies on economic sanctions lists, financial regulators are increasingly inquiring about another group: customers previously booted for suspicious activity or actual crimes, say former bankers.
The $1.1 billion sale to U.K. bank Standard Chartered PLC follows enforcement actions issued in August requiring American Express Bank Ltd., the American Express private banking subsidiary, to pay $65 million in penalties and acknowledge its responsibility for AML and Bank Secrecy Act failures.