CAPITALISM'S ACHILLES HEEL Dirty Money and How to

huge transfers in and out of 150 Saudi accounts? Some of the responsible
officers were right across the street from Riggs at the U.S. Treasury
Department.
The Senate investigation found that “the anti–money laundering program
at Riggs Bank was almost completely dysfunctional.” 10 Examiners
from Treasury’s Office of the Comptroller of the Currency (OCC) reported
major deficiencies continuously from 1997 on but then failed
to take actions necessary to enforce corrections. Instead, examiners repeatedly
found that, despite obvious shortcomings, Riggs anti–money
laundering efforts were “making progress” and were “satisfactory.” Furthermore,
the examiner in charge allegedly kept information critical of
Riggs out of OCC files and then left government employment for an executive
vice presidency at Riggs, where he continued to meet with OCC
officials, contrary to post-employment regulations.
For Riggs Bank and its many customers in Washington and worldwide,
it seems that KYC meant “Kleptocrats, You, and Crooks,” all receiving polished
service from the bank’s highly professional officers. Riggs and its regulators
utterly failed in their most fundamental task: insuring the integrity of
the institution. Riggs paid a fine of $25 million and a second fine of $16
million and agreed to settle court action in Spain by paying $8 million to a
foundation set up for victims of Pinochet’s rule, with two owners of Riggs
agreeing to pay the foundation an additional $1 million. Sale of the bank to
new owners was completed in early 2005.
The proceeds of corruption coming out of developing and transitional
economies are lodged in western coffers. Many U.S. and European banks ignore
or skirt regulations in order to receive and profit from this money. The
following pages will focus on Nigeria, Indonesia, and Pakistan. In each, keep
in mind where the money goes.
Nigeria
Dirty Money at Work 57
Ladies and gentlemen, we have a winner. In the global corruption sweepstakes
the grand prize goes to—and let’s have a loud cheer for—N I G E R I A—the
most corrupt country in the world!!
How can I possibly make such a bald statement? I’ve observed financial
skullduggery in many countries, but from my perspective no nation with