Rabobank agrees to $369 million in forfeiture, civil penalties for BSA/AML deficiencies
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A criminal information will be filed today in U. Rabobank has agreed to continue cooperating with the Justice Department in its ongoing investigation of the manipulation of benchmark interest rates by other financial institutions and individuals.
Rabobank is the fourth major financial institution that has admitted its misconduct in this wide-ranging criminal investigation, and other banks should pay attention: According to signed documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR trade commodity finance rabobank as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.
At the time relevant to the conduct in the criminal information, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency the Contributor Panel selected by the BBA.
Euribor is the rate at which Euro interbank term deposits within the Euro zone are expected to be offered by one prime bank to another at The Euribor at a given maturity is the result of a calculation based upon submissions from Euribor Contributor Panel banks.
From at least throughRabobank was also a member of the Contributor Panel for Euribor. In addition, according to the statement of facts accompanying the agreement, from as early as January through Octobera Rabobank yen LIBOR submitter and a Rabobank Euribor submitter had two separate agreements with traders at other banks to make yen LIBOR and Euribor submissions that benefitted trading positions, rather than submissions that complied with the definitions of LIBOR and Euribor.
According to the statement of facts, Rabobank employees engaged trade commodity finance rabobank this conduct through electronic communications, which included both emails and electronic chats. For example, on Sept. If you can, I would like 1mth libors higher today. Dont tell [another Rabobank U. Dollar derivatives trader] haa haaaaaaa. Sold the market today doooooohhhh! Two days later, on Dec. We just stuffed ourselves with good ol piemash n licker!! In an example of an agreement with traders at other trade commodity finance rabobank, on July 28,a Rabobank rate submitter and Rabobank trader discussed their mutual desires for a high fixing.
The submitter stated to the trader: By entering into a DPA with Rabobank, the Justice Department took several factors into trade commodity finance rabobank, including that Rabobank has no history of similar misconduct and has not been the subject of any criminal enforcement actions or any significant regulatory enforcement actions by any authority in the United States, the Netherlands, or elsewhere.
In addition, Rabobank has significantly expanded and enhanced its legal and regulatory compliance trade commodity finance rabobank and has taken extensive steps to remediate the misconduct. Significant remedies and sanctions are also being imposed on Rabobank by several regulators and an additional criminal law enforcement agency the Dutch Public Prosecution Service.
Leon and Trial Attorney Alexander H. Koenig and Eric L. Schleef of the Antitrust Division. Prewitt and Trial Attorney Richard A. The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Trade commodity finance rabobank Department acknowledges and expresses its deep appreciation for this assistance.
Various agencies and enforcement authorities from other nations are trade commodity finance rabobank participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.
The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of trade commodity finance rabobank crimes.
For more information about the task force visit: Deferred Prosecution Agreement Statement of Fact. Justice News Department of Justice. Tuesday, October 29,