Kenneth Rijock

Kenneth Rijock

Tuesday, September 1, 2015

FOOD FOR THOUGHT: WESTERN HEMISPHERE PEPS WITH DIRTY MONEY IN SWITZERLAND


If you have not seen the computation, made by a private entity, from whistleblower data,  of exactly how much "flight capital" was on deposit in HSBC Private Bank (Suisse) SA, from each of the countries in Latin America and the Caribbean, perhaps this chart may serve as a wake-up call. The billions of dollars, linked to clients with passports from those specific countries, tell us that corruption in the region remains rampant, and that bankers in North America, and the European Union, should adjust their Country Risk accordingly, based upon the level of dirty money at just one Swiss bank.



From a risk standpoint, any compliance officer that knowingly accepts a new, affluent client from this region, that he learns is a PEP, is not doing his job. Latin American PEPs are not the golden goose that your New Accounts people hope for, they represent a nightmare, just waiting to happen. If you are the gatekeeper, and you are serious about your responsibilities, just say no.


  

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