Rabobank National Association, a subsidiary of a Netherlands bank, pleaded guilty in federal court February 7 to unlawfully impeding a U.S. examination of its California operations, including Calexico and Tecate branches.
Rabobank admitted that its deficient anti-money-laundering program permitted hundreds of millions of dollars in untraceable cash to be deposited in its rural bank branches in Imperial County. The loot was transferred without Rabobank notifying United States banking authorities.
In 2013, the bank actively sought to deceive regulators about its operations. Rabobank admitted it knew that suspicious transactions made by customers involved International narcotics trafficking, money laundering, and organized crime.
The bank will have to pay a fine of $368.7 million, the largest financial penalty in the Southern District of California court area.