Senate Committee Calls for Stronger PEP Rules, But Passage Seen as Unlikely

By Colby Adams

A U.S. Senate subcommittee called for reforms Thursday to better detect when corrupt foreign politicians hide dirty money in the United States, including the implementation of federal beneficial ownership rules. Lawmakers in the Senate Permanent Subcommittee on Investigations recommended the changes during a hearing on how foreign political figures used accounts at Bank of America and HSBC, as well as other institutions, to launder funds. The senators released details of the violations, which included the abuse of shell companies, in a 325-page report issued late Wednesday. The report recommends that U.S. financial institutions broaden their monitoring of politically exposed persons...