SAN DIEGO – the Dutch lender Rabobank’s California subsidiary, is scheduled for a plea Wednesday in a long-term research that led to accusations of the bank was used to launder millions of dollars in Mexican drug money.
Rabobank said last month that it set aside about 310 million euros ($384 million) to settle and that the subsidiary of the Rabobank, National Association, would be likely to plead guilty to a charge that employees hid information from regulators nearly five years ago. It would be one of the largest AMERICAN settlements with Mexican money laundering, but still only a fraction of the $1.9 billion that the british HSBC agreed to pay in 2012.
An agenda for the AMERICAN Judge, Judge Jill Burkhardt in San Diego says an arrest and plea were scheduled on Wednesday. No additional information is publicly available.
Representatives of the subsidiary of the Rabobank did not respond to a text message and e-mails seeking comment.
While the charges against the bank have not yet been made public, former compliance officer George M. Martin agreed to cooperate with the authorities in December under a deal that delays his prosecution for two years.
Martin, one of the vice-president and anti-money laundering investigations manager at the establishment, acknowledged he oversaw the policies and practices that blocked or hindered probes into suspicious transactions, and said that he has acted in the direction of the supervisors, or at least their knowledge. He indicated that he and others millions of dollars to get through without adequate testing.
Martin and others allegedly a crush on a Mexican customer that is more than $10 million in suspicious transactions, despite the fact that you will be warned about the client, because a community on the border of the city of Calexico wanted more business. Authorities seized the account in 2011, on suspicion it was used for millions of dollars in drug proceeds.
Martin and others allegedly failed to alert authorities to suspicious activities at the offices in Calexico and Tecate, a town on the border with Mexico. In 2009 and 2010, the employees allegedly allowed a Mexican client to withdraw nearly $500,000 amounts just under the national reporting requirements, even though the client had reported to the Ministry of finance of at least 25 times for suspicious activity.
The efforts to hide suspicious activity allegedly took place from 2009 to 2012. Rabobank, based in Utrecht, the Netherlands, said that the U.S. government began investigating in 2013 or the subsidiary violated the U.S. Bank Secrecy Act and other laws and regulations.