The California unit of Dutch bank Rabobank has agreed to pay $368 million after processing funds linked to drug-trafficking. The bank has been allowing untraceable transactions from Mexico adding up to hundreds of millions of dollars over a matter of months. These transactions have not been monitored or reported like they should have been giving federal regulators a hard time tracing down the suspicious activity. Assistant U.S. Attorney General John Cronan Rabobank has said, Rabobank chose to “look the other way” when it learned of transactions indicative of international drug trafficking, organized crime and money laundering. This is not the first offense by Rabobank, who has repeatedly stood in the way of the U.S. Office of the Comptroller of the Currency with investigations in 2013, 2012, 2008, and 2006. Looking into the actions of Rabobank makes one question the effectiveness of the government regulators who have, while finally catching Rabobank, let them slipped by with bad practices many times in the past. Should there be stricter regulation giving the controllers more access to confidential bank information, or would that be too invasive?
https://www.reuters.com/article/us-rabobank-fraud-usa/rabobank-agrees-to-pay-368-million-over-processing-illicit-funds-idUSKBN1FR2U4
1 comment:
Based on this example, I believe the comptrollers should have access to confidential bank information in order to prevent criminal activities such as these. Banks, and by extension corporations, are not people, and therefore they do not deserve the protection of privacy guaranteed to individuals.
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