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February 8, 2018updated 09 Feb 2018 6:20am

Rabobank to pay $369m to settle drug money laundering charges in US

Rabobank, National Association (RNA), the US subsidiary of Dutch lender Rabobank, has agreed to pay around $369m as penalties and fines to settle allegations that it laundered funds likely linked to drug traffickers.

In a statement, the US Department of Justice said that RNA allowed millions of untraceable cash to be deposited in the Californian branches and transferred it without proper surveillance programme or notifying it to the federal regulators.

The statement added that the bank had pleaded guilty to the charge of conspiring to obstruct a regulatory examination.

RNA has entered into agreements with the US Department of Justice and the Office of the Comptroller of the Currency (OCC) to conclude all investigations related to the Bank Secrecy Act / Anti-Money Laundering (BSA/AML) compliance program deficiencies.

The terms of the agreement also ends the investigations related to the conduct by certain former employees before 2014.

The Financial Crimes Enforcement Network (FinCEN) also agreed to conclude its investigation adding no other penalties or measures against the bank.

Rabobank managing board chairman Wiebe Draijer said: “The findings at our subsidiary RNA relate to events that took place before 2014. The violations that took place are serious, regrettable and unacceptable.

“Rabobank is fully committed to conducting business with the highest levels of integrity, which includes strict compliance with all applicable laws, regulations, and standards in each of the markets and jurisdictions in which it operates.

“Rabobank and RNA cooperated fully with all authorities, who specifically acknowledged the bank’s cooperation.”

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