Five federal regulatory agencies on Friday issued a reminder to banks and financial institutions that they should continually monitor risks associated with the accounts of foreign officials. For now, though, the agencies are not requiring any additional due diligence for those accounts.
The agencies–the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC)–said well-established due diligence and anti-money laundering (AML) rules are sufficient to monitor the risks of potential illegal activity by so-called “politically exposed persons,” or PEPs.
