California-based Rabobank National Association takes Q4 provision
Rabobank, National Association (“RNA”), a California-based subsidiary of Coöperatieve Rabobank, U.A. (“Rabobank”), has taken a Q4 2017 provision of approximately EUR 310 million in anticipation of a settlement connected to previously disclosed investigations.
RNA has been under investigation since 2013 by the U.S. Department of Justice and other U.S. authorities for possible violations of the U.S. Bank Secrecy Act and other regulations and statutes in relation to its historical AML compliance program, and the Office of the Comptroller of the Currency’s (“OCC”) examination of that program in the past. RNA is cooperating with the investigations, and more recently has been engaged in discussions to settle these matters. As a result, RNA has taken a provision in its Q4 2017 financial results for a potential settlement, which will likely include a guilty plea by RNA to a single offense related to former employees’ withholding of information from RNA’s prudential regulator, the OCC, nearly five years ago. Rabobank believes that these investigations will come to a final conclusion in Q1 2018, and will not comment further on the matter at this time given that discussions are on-going.