Rabobank N.A., the Roseville-based network of California community banks, was cited for “identified deficiencies” in its oversight of suspicious banking activity, according to a consent order released Friday by the federal Office of the Comptroller of the Currency.
The consent order, signed Dec. 5 but issued publicly on Friday, said the bank is required to submit a plan to ensure it adequately monitors and reports suspicious activity in its accounts, such as cash transactions of more than $10,000 in a single day.
Those requirements are part of the federal Bank Secrecy Act, which is designed to thwart illegal drug transactions, funding of terrorists and other illegal financial activities.
“We respect our regulator’s conclusions, and will continue to take measures that further improve various reporting and other internal functions,” said Greg Jones, corporate communications manager, in a statement. “Our levels of capital and liquidity remain strong, and we are committed to serving our customers’ ongoing financial-services needs.”
He declined to discuss what events or practices triggered the sanctions. “Our statement contains all we have to say at this time with respect to the order.”
Tom Jorn, the assistant deputy comptroller in San Francisco who signed the order, said he “cannot comment about any specific investigations or give any contextual comment” about the BSA or anti-money-laundering cases.
The comptroller’s announcement comes the same week as the U.S. Justice Department filed criminal charges of interest-rate fixing against three former traders from Rabobank Group, the parent company based in the Netherlands. Last October, the company was fined $1 billion and its CEO stepped down, part of investigations of at least five banks accused of manipulating global banking interest rates.
Rabobank N.A. focuses on individual and business customers in the agriculture and food industries. California, with 119 branches and about 1,700 employees, is its only U.S. presence.
Call The Bee’s Claudia Buck, (916) 321-1968.