U.S. regulators tell Rabobank: Fix anti-money laundering programs

WASHINGTON Fri Jan 17, 2014 4:32pm EST

WASHINGTON Jan 17 (Reuters) - U.S. regulators told Dutch bank Rabobank to fix problems with its anti-money laundering programs last month after identifying compliance issues in an order made public on Friday.

The Office of the Comptroller of the Currency (OCC) entered into a consent order with Rabobank in December. The U.S. bank regulator included the order in a list of recent enforcement actions that was published on Friday.

Rabobank, which has many California locations, was fined $1 billion by U.S. and European regulators last year for rigging benchmark interest rates. Several top executives stepped down, and three former traders were criminally charged this week.

The OCC order does not include any penalties.

U.S. regulators have made anti-money laundering efforts a priority in recent years and have required nearly every major financial institution to improve its policing of illicit activity by customers.

JPMorgan Chase & Co agreed last week to improve its compliance after it was forced to pay $2 billion to U.S. authorities over issues related to its relationship with Ponzi schemer Bernard Madoff.

The OCC directed Rabobank to appoint a compliance committee and detail the steps needed to fix its anti-money laundering program, for review by U.S. regulators.

It also must conduct an assessment to determine locations and products that pose anti-money laundering risk to the bank, the OCC said.

Spokesmen for Rabobank did not immediately respond to requests for comment.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article