Riggs Banks investigators have discovered evidence of possible criminal activities by some former employees who managed accounts of ex-Chilean dictator Augusto Pinochet. The investigation could pose problems for the pending sale of Riggs to PNC Financial Services Group Inc. The findings were referred to federal prosecutors, the Post said. Investigators found evidence that some of Pinochet’s associates and family members moved large amounts of money through at least four other U.S. banks, including Citibank and Bank of America Corp., the Post reported, citing the people.

Spokesmen for Riggs, Bank of America and Citigroup Inc. declined to comment to the Post, the paper said. Specific actions that may have violated the law, and the number of former employees involved, weren’t detailed, the Post said.

The investigation could pose problems for the pending sale of Riggs to PNC Financial Services Group Inc., the paper said. A PNC spokesman didn’t return a call from the Post seeking comment.

Washington Post, Bloomberg.com, September 3, 2004