Riggs Pleads Guilty in Money-Laundering Case

Riggs Bank pleaded guilty to a criminal violation of the Bank Secrecy Act, a U.S. anti-money- laundering law, and agreed to pay $16 million for failing to report suspicious activity in accounts held by former Chilean dictator Augusto Pinochet and Equatorial Guinea officials.

In federal court, Riggs also agreed to a five-year probation deal with the Justice Department, which can be terminated if the bank is sold.

Riggs’ parent company, Riggs National Corp., agreed in July to be acquired by PNC Financial Services Group Inc. in a deal that was valued at $779 million when it was announced.