Fed Adds to Riggs' Woes

The Federal Reserve ordered Riggs Bank(RIGS Quote) to retain an independent consultant to review its operations, a day after regulators imposed a $25 million penalty on the Washington bank for violating anti-money-laundering provisions.

The Fed also directed Riggs to institute a series of measures, to make sure the bank doesn't again run afoul of the money-laundering regulations.

Late Thursday, the Treasury Department's Office of the Comptroller of the Currency fined Riggs $25 million over alleged violations in its handling of bank accounts for several Saudi Arabian diplomats. Several government agencies had been investigating whether the accounts, which are now closed, had been used to finance terrorist activities. ...