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The Latest: Rabobank lied to regulators on money laundering

February 7, 2018

A Rabobank bank location is seen, Tuesday, Feb. 6, 2018, in Thousand Oaks, Calif. Dutch lender Rabobank's California subsidiary is scheduled to enter a plea a long-running investigation that led to allegations the bank was used to launder millions of dollars in Mexican drug money. (AP Photo/Mark J. Terrill)

SAN DIEGO (AP) — The Latest on Dutch lender Rabobank’s California unit pleading guilty to one count of conspiracy to defraud the United States after an investigation into laundering Mexican drug proceeds (all times local):

2 p.m.

A plea agreement that requires Dutch lender Rabobank to pay $369 million says the bank’s California subsidiary lied to regulators about efforts to prevent laundering of Mexican drug proceeds.

The subsidiary, Rabobank National Association, acknowledges it handled at least $369 million in suspicious transactions from 2009 to 2012, mainly through branches in Calexico and Tecate on California’s border with Mexico.

As part of the agreement, the bank accepts that the money came from illegal activities, including drug trafficking and organized crime.

The plea agreement says three unnamed executives who have left the company lied when regulators began asking questions in 2013.

The subsidiary pleaded guilty Wednesday to one count of conspiracy to defraud the United States in the cover-up.

Rabobank says settling the matter was important and that it has improved oversight.

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11:30 a.m.

Dutch lender Rabobank’s California subsidiary has agreed for forfeit $368 million after an investigation into whether it was used to launder millions of dollars in Mexican drug money.

The subsidiary, Rabobank National Association, pleaded guilty Wednesday to one count of conspiracy to defraud the United States.

Rabobank said last month that the subsidiary would likely acknowledge that employees hid information from regulators nearly five years ago.

The forfeiture is one of the largest U.S. settlements involving the laundering of Mexican drug money, though it’s still only a fraction of the $1.9 billion that Britain’s HSBC agreed to pay in 2012.

Rabobank attorney James Cavoli declined to speak with reporters after a brief hearing.

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1 a.m.

Dutch lender Rabobank’s California subsidiary is scheduled to enter a plea in a long-running investigation that led to allegations the bank was used to launder millions of dollars in Mexican drug money.

Rabobank said last month that it set aside about 310 million euros ($384 million) to settle. And it said the subsidiary, Rabobank National Association, would likely plead guilty to a charge that employees hid information from regulators nearly five years ago. It would be one of the largest U.S. settlements involving Mexican money laundering.

A calendar for U.S. Magistrate Judge Jill Burkhardt in San Diego says an arraignment and plea were scheduled Wednesday. No additional information was publicly available.

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