FROM A
DIFFERENT ANGLE by Kenneth Rijock
Financial Crime Consultant, for World-Check
An Important lesson about Reputation Damage & PEPs
18 November 2009

If you read page one on America's most prominent newspapers today, you saw that a PEP from one of the world's most reputedly corrupt countries has been reportedly able to gain easy entry into the USA, notwithstanding that he should not be granted a visa. What many readers also saw was the apex of reputation damage; two prominent US banks named for banking this individual's millions, and happily moving his money, even though it was common knowledge that the source of funds allegedly consisted of bribes and other illegal payments. Think damages to reputation, squared. 

Compliance officers at US banks should think long and hard about recommending to their board of directors that PEPs from blatantly corrupt dictatorships should be universally declined as clients. To do otherwise invites exposure, by name, by the global media, complete with photographs of the PEPs multi-million dollar toys.

I fully understand that such clients bring extremely lucrative business into the bank, but, in an age where FCPA indictments are increasing exponentially, the likelihood that your client's millions (in your accounts) constitute the proceeds of crime are probable at worst. The times are changing; get with the programme, or risk having your bank's name strewn all over page one.

_______________________________________________________________________________________________________
 

The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.

Email Article

Banner
PRODUCT INFORMATION
NEWSWIRE
Chechen leader profiled by World-Check 5 year...
Read the full press release here.
World-Check protects clients from illicit ves...
World-Check‟s vessel screening research unit profiled 17 of the 27 vessels allegedly connected to Iran‟s nuclear and missile programs many months ahead of their inclusion on published government lists...more
Read World-Check experts commentary on corpor...
Read World-Check's Robert Mitchell and David Leppan commentary on corporate fraud in Business Ethics in the Times supplement 18 May 2010. ...more
How will the UK Bribery Act affect your busin...
How will the UK Bribery Act affect your business? FCPA and anti-corruption compliance specialist Michael Osajda explains in detail. Watch the video...more
World-Check announces 4500 clients
World-Check has reported another year of exceptional growth, bringing its client base to over 4,500 organisations. A combination of outstanding client service, new products and global execution has at...more

ARTICLE ARCHIVE
Banner
© 2010 World-Check, All Rights Reserved.