LONDON, United Kingdom (PRWEB) April 27, 2006
World-Check the leading provider of KYC intelligence on heightened risk individuals and entities to the financial industry, today announces the release of a Case Study titled “Reputation Damage: The Price Riggs Paid.’
The Case Study outlines the reputation free-fall Riggs Bank went through in the final years of the banks existence and it discloses the true cost of non-compliance.
Compiled by World Check’s founder and CEO, David Leppan, who is widely regarded as an industry expert on KYC and AML, the Case Study provides a snapshot of how an historic cornerstone in the U.S. financial community, Riggs Bank, was left with its reputation in tatters, several shareholder suits brought against its management, multiple fines and penalties and finally a substantial reduction in the bank’s agreed sales price.
The Case Study illustrates how in just three years things fell apart at an institution where some 20 presidents had held accounts including Abraham Lincoln and Dwight D. Eisenhower. Once known as ‘The most important bank in the most important city in the world’ Riggs became according to one Judge ‘a greedy corporate henchman of dictators and their corrupt regimes.’
“What motivates most institutions to carry out effective KYC and AML procedures is their reputation. No compliance officer wants to have his morning coffee while reading about his or his institution’s KYC failings on the front pages of the Wall Street Journal or the Financial Times,” said David Leppan. “Riggs Bank and its failings have provided a superb example not only of the risks but of the very real financial costs of non-compliance.”
World-Check’s Case Study shows what went wrong, why it went wrong and the steps that all financial institutions should take to ensure it does not happen to them.
Compliance Officers and more importantly the CEOs and Board Members of all financial institutions should take the time to read this Case Study which illustrates the true cost of reputation damage.
Download “Reputation Damage: The Price Riggs Paid” at http://www.world-check.com.
World-Check assists institutions in mitigating reputation, financial and compliance risk by monitoring and correlating information on high-risk entities. World-Check provides risk-reduction technology to 1,600 institutions in more than 120 countries. Recognized as an industry pioneer, World-Check has revolutionized and “standardized” global Know Your Customer (KYC) and Politically Exposed Person (PEP) screening. Today, 45 of the world’s top 50 banks, and hundreds of regulatory and government agencies use World-Check’s global list of heightened-risk individuals and organizations. For more information, please visit https:http://www.world-check.com.
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