A national bank pleaded guilty to criminal charges for concealing anti-money laundering ("AML") violations and obstructing the Office of the Comptroller of the Currency's ("OCC") examination of the bank. The bank will forfeit $360 million for processing illicit funds while lacking an adequate AML program under the Bank Secrecy Act ("BSA").
Rabobank National Association ("Rabobank") admitted that it implemented policies and procedures that were designed to avoid complying with BSA/AML requirements, and failed to appropriately review and report transactions that were indicative of illicit activity. The bank admitted to processing large cash transactions near the Mexican border without adequate review. Although the BSA requires ongoing monitoring of customer accounts, the bank admitted to placing certain customers on a "verified list" and instructing its BSA/AML staff that those customers' transactions needed no further review. The DOJ also found that Rabobank knowingly made misrepresentations to the OCC during its examination process in order to conceal deficiencies.
Two months before the bank's guilty plea, a former Rabobank executive entered into a deferred prosecution agreement for his role in the misconduct, and agreed to cooperate with the DOJ's investigation of the bank.
In a related matter, the OCC assessed a $50 million civil monetary penalty against Rabobank for BSA/AML deficiencies. The $50 million will be credited toward satisfying the fine assessed by the DOJ.
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