International Bank Uncovers Suspicious Client Account

A major international bank has made a significant discovery that raises concerns about money laundering and terrorist financing. A client account was opened by a professional intermediary on behalf of an unknown individual or entity, sparking a thorough investigation.

The Account Structure

The international bank holds “pooled” accounts managed by intermediaries for various clients, including mutual funds, pension funds, and money market funds. However, in this case, the funds are not commingled with other accounts, but instead have sub-accounts that can be attributed to each beneficial owner.

Anti-Money Laundering Regulations

As per anti-money laundering (AML) regulations, the bank is required to identify all beneficial owners of the account held by the intermediary. The Reserve Bank of Vanuatu has issued guidelines for international banks to ensure compliance with AML regulations, particularly in cases where customers do not present themselves for personal interview.

Enhanced Due Diligence

The bank’s decision to open an account for a Politically Exposed Person (PEP) is subject to senior management approval and requires enhanced customer identification procedures, verification, and ongoing diligence processes. The bank has reason to believe that the client account was opened on behalf of an individual or entity who must be identified.

Investigation and Reporting

As a result of these findings, the international bank is conducting a thorough investigation into the client account and has reported its concerns to regulatory authorities. The outcome of this investigation remains uncertain at this time.

Key Points:

• A major international bank has discovered a client account that raises concerns about money laundering and terrorist financing.
• The account was opened by a professional intermediary on behalf of an unknown individual or entity.
• The bank is required to identify all beneficial owners of the account held by the intermediary, as per anti-money laundering regulations.
• Enhanced due diligence procedures are being applied to the account, including senior management approval and ongoing diligence processes.