Voice of Experience: PJ Johnson, Managing Director and Global Head for Anti-Money Laundering and Sanctions Compliance, Citi

By Melissa J. Anderson (New York City)

To Pamela (PJ) Johnson, Managing Director and Global Head for Anti-Money Laundering (AML) and Sanctions Compliance at Citi, mentoring and developing individuals is a chief source of satisfaction.

“I’ve worked on pieces of important legislation, including the USA PATRIOT Act, and a number of significant money laundering cases. But, as I turn 50, what I’m most proud of is my role in creating a community of AML professionals.”

“Whether it is people with whom I have worked or others who have worked for me, it is satisfying to see people develop and move up the ranks to larger and more challenging positions.”

She continued, “As I look at my team in particular, I’m very humbled to be surrounded by such experienced and dedicated professionals. I’d be delighted to think that I may have contributed in some positive way either through mentoring or educating people about AML.”

Career Path in Anti-Money Laundering

Johnson began her career as a bank teller when she was in high school and college and worked nights at a nursing home. “I started out wanting to become a nurse,” she recalled. “But I quickly realized that I did better in economics than biology, so I stayed in banking and eventually became a branch manager.”

Then something happened in the industry that shifted the course of her career. “There were several big money laundering cases involving a few large banks in Massachusetts in the ‘80s,” she explained, and suddenly banks were rushing to develop and implement anti-money laundering (AML) strategies. “We were having a meeting, and someone asked ‘Do we have a program?’ We really didn’t, so I raised my hand, and said, ‘I’ll do it.’”

Johnson went on to create the plan, which brought her the recognition that propelled her toward a job as the bank’s compliance officer. Her next move was to the public sector where the government was looking for people with practical banking experience to help develop new AML regulations. Once again, she said “I’ll do it” and then spent seven years at the Department of the Treasury working in financial crimes and then at the Federal Reserve for another seven years as the Senior AML Coordinator in Special Investigations. In these positions, working with the international community, she helped to draft global AML standards and visited over 50 countries.

“Then post 9-11, banks were looking for people with government experience to explain and implement new AML regulations, and in particular, the integration of anti-corruption and anti-terrorist financing typologies with AML. Johnson moved to Deutsche Bank, and then in 2004, she joined Citi as the Director of AML Compliance Monitoring and Training and in 2006, was named the Global Head of AML and Sanctions Compliance. Johnson said she felt her early career in banking gave her an edge when she moved to the public sector. “I knew how the industry worked – I had been in the trenches,” she said. “Then coming back to the private sector, the challenge was the application of the rules in a much different industry.”

Now, as Global Head of AML and Sanctions Compliance, she is struck by the changes that have occurred in the field around the world since the turn of the century. “Partly, because the public and private sectors have been successful in AML efforts, it’s become more complicated,” she said.

“Ten or fifteen years ago, banks were concerned with drug dealers trying to launder actual bags of cash,” she explained. “Today AML Compliance Programs have expanded to include economic sanctions, corruption, terrorism, fraud and tax. It has increased the portfolio and the responsibilities of the AML Officer and added much more to our plates.” How an AML Compliance function coordinates all of these issues and protects the reputation of a bank remains critical.

Currently, Johnson is involved in assisting the business drive opportunities for the bank. “Citi wants to be the world’s global digital bank. My AML team is working with the businesses to not only create additional opportunities for existing customers, but also to provide new services for the un-banked in the developing world.”

She continued, “It can be a win-win. We must make sure the product is profitable and accessible but, before we launch a new product or service, we must also make sure that there are effective controls in place.

Diversity in Banking

Johnson said, “Personally, I haven’t faced any specific challenges as a woman or as a gay person. However, more generally, I see that there are certain roles in a bank, like compliance, that may be more welcoming to women.”

Throughout the industry, it appears that other areas are more male dominated, she noted. “People may think that the best candidate for a job is someone with similar traits. To me, job selection should not be based on male or female traits, but only on a candidate’s qualifications.”

“Things like being a woman, being LGBT, or a minority, those things can tend to define you first. I think that’s disappointing. I hope that someday those labels fade away altogether. The LGBT label is often the first thing people know about me, but it’s not the most important thing.”

“I’m not ashamed but proud, of course! But I want to be known as PJ, rather than gay PJ,” she explained.

Johnson said she has been out for many years. “Working with the government, you’re dealing with security clearances. It’s difficult to be in the closet because of the nature of your work. There’s never been a situation when I was hiding it.”

Advice for Professional Women

She advised young people entering the professional world not to avoid roles that will provide a good foundation even if it’s not exactly a dream job. “When you’re first starting your career, don’t be afraid to take an entry level job that will provide you with experience. Being a bank teller was a tough job but it gave me terrific experience.”

“That said,” she cautioned, “don’t stay too long.”

She continued, “One of the things I’ve learned is that expertise is completely different than experience. You can be an AML subject matter expert, but there are things you learn from experience, like managing people, that requires a completely different skill set. Even if you know the subject matter well, you still need a certain level of experience to be the most effective.”

“The other thing is network, network, network. People are nervous about asking senior people to help them or to even just have a cup of coffee together. I know I was, but I was also fortunate that I did as there are many people who have been instrumental in my career, and I am very grateful. I’m never offended when people ask me for advice. I’m actually very pleased, and it’s often the most interesting part of my day. You might think you’re bothering people, but most people are delighted to share their experiences.”

For women who are more senior, she advised; don’t be afraid to be yourself. “At our age, you should be comfortable in your management style. There’s no reason to feel you have to conform if you’re smart and capable. The more we try to conform, the less likely we’ll be able to make significant impact in terms of the evolution of diversity in the industry.”

Johnson is a member of Citi’s Corporate Center Women’s Organization and encourages the women on her team to take advantage of it as well. She also liaises with Citi’s Pride Network. “The group partners with other Employee Resource Groups (ERGs) to get better synergy, share funding and access a broader platform to get the message across.”

She also represents Citi for a number of organizations, like serving as Co-Chair of the Human Rights Campaign’s (HRC) Business Council. “We provide advice on issues affecting LGBT rights from a business standpoint. For example, how do domestic partner benefits work in practice?”

In Her Personal Time

In addition to her responsibilities with the HRC, Johnson is a member of Women in Federal Law Enforcement. She is very active in the alumni group for her alma mater Bates College, helping to manage and fund a scholarship in the memory of one of her best friends and roommate who passed away from cancer at an early age. “I was the recipient of financial aid, and I know that my parents had to scrimp and save to afford to send my siblings and me to college,” she said. “They were educators and felt that college was extremely important. I want to honor their sacrifice for our family and return the favor to another future Bates Bobcat.”

When it comes to fun, she added, sometimes AML feels more like “All My Life” than Anti- Money Laundering. “Now that I live in the city, I rarely play golf anymore, but I have been told that my karaoke parties are legendary,” she laughed.