Rabobank Plea Agreement

The recovery amount is the second largest in the history of the HSI, said Shaw, which was surpassed only by the $1.9 billion in New York, which HSBC paid in 2012 after admitting to helping Mexican drug cartels spend money and do improper business in Iran. Nevertheless, the bank escaped the real criminal complaints and instead reached a five-year, deferred agreement, which ended in December. At the hearing, Rabobank pleaded guilty to conspiracy to defraud the United States and obstructing an investigation by a financial institution. In his guilty plea, Rabobank admitted conspiring with several former executives to mislead the United States by illegitimately preventing the Treasury Currency Office of the Comptroller and by preventing the CCO`s audit of its activities throughout California, including its banking subsidiaries Calexico and Tecate. WASHINGTON (Reuters) – Rabobank [RABO. UL] N.A., a California unit of the Dutch cooperative bank, agreed Wednesday to pay more than $368 million for the treatment of funds likely related to drug trafficking and other illegal activities, and pleaded guilty in federal court to conspiring to obstruct regulatory oversight. Rabobank`s U.S. subsidiary pleaded guilty this week to concealing a charge of conspiracy to obstruct, obstruct and obstruct a government investigation by concealing defects in its anti-money laundering program. At today`s hearing, Rabobank pleaded guilty to conspiring to defraud the United States and obstructing an investigation by a financial institution. In his guilty plea, Rabobank admitted conspiring with several former executives to mislead the United States by illegitimately interfering with the OCC`s ability to regulate the bank and by preventing the CCO`s audit of its activities throughout California, including its banks Calexico and Tecate. Rabobank admitted that its deficient AML program has resulted in the deposit of hundreds of millions of dollars in untraceable cash from Mexico and elsewhere at its rural banking agencies in Imperial County, and to transfer grasslands without proper federal knowledge, as required by law. Having noted these deficiencies during the review of Rabobank`s BSA/AML compliance program in 2012, rabobank executives have actively attempted to conceal and minimize the failures of their AML program in order to mislead regulators as to their actual status, in the hope of avoiding regulatory sanctions previously imposed on Rabobank in 2006 and 2008 for almost identical failures.