Profiling individuals: know your client

Case studies

A substantial, high profile Russian client of a Western bank became tainted by rumoured links to organized crime groups and suspicious transactions. The rumour stemmed from a significant banking scandal, involving allegations of money laundering on behalf of Russian mafia groups. The subject had family links to a senior executive at the centre of the controversy. In accordance with its “know your client” policy, the bank asked Capcon Argen to ascertain whether there was any substance to the rumour.

In the climate of the 1990s, Russian financial institutions and their executives were widely viewed with suspicion both nationally and internationally. The high profile Russian was tarred with the same brush. He became the victim of speculation as to why he had ceased his previously very public role.

Capcon Argen’s research revealed that tax avoidance schemes using offshore corporations accounted for much of the suspected money flows. Nothing detrimental was found against the bank's customer. The allegations were based on innuendo, selective and irresponsible leaks and disingenuous “guilt–by–association” assumptions. The whole issue became part of a turf war between certain regulatory bodies hunting scalps clouded by Russian political influence.

Capcon Argen was thus able to offer the instructing bank a level of comfort to proceed with transactions on behalf of its valued client.

Case studies index


Case studies A substantial, high profile Russian client of a Western bank became tainted by rumoured links to organized crime groups and suspicious transactions. The rumour stemmed from a significant banking scandal, involving allegations of money laundering on behalf of Russian mafia groups. The subject had family links to a senior executive at the centre of the controversy. In accordance with its “know your client” policy, the bank asked Capcon Argen to ascertain whether there was any substance to the rumour.