Final Chapter Nears in Riggs Bank Drama

A near-final chapter in the international drama of Riggs Bank is unfolding in a federal courtroom as a judge prepares to rule whether the Washington institution is being punished enough for failing to report its suspicious transactions involving foreigners, including former Chilean dictator Augusto Pinochet.

The $16 million fine Riggs agreed to pay is the largest criminal penalty ever imposed on a bank of Riggs’ size, according to prosecutors. In addition, the bank faces a record $25 million civil fine levied by a Treasury Department agency last May.

The plea agreement with prosecutors means the old-line Washington institution with a franchise on dealing with the capital’s diplomatic community avoided prosecution and cleared the way for its parent Riggs National Corp. to be sold to Pittsburgh-based PNC Financial Services Group Inc. for $643 million.

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