DOJ warns banks it may revoke some money-laundering settlements

Those banks should have never been given a non-prosecution agreements at all!

Some banks that have non-prosecution agreements over failures to police transactions for criminal activity could see those deals withdrawn and be forced to plead guilty, a U.S. Justice Department official said on Monday.

“The criminal division will not hesitate to tear up that agreement when that action is appropriate,” Assistant Attorney General Leslie Caldwell told an Association of Certified Anti-Money Laundering Specialists conference.

The USA Patriot Act in 2001 tightened anti-money laundering laws in an effort to cut off terrorist financing. The Justice Department has since entered into non-prosecution agreements (NPAs) and deferred-prosecution agreements (DPAs) with financial institutions accused of anti-money laundering failures that allowed criminal activity to flourish.

Justice has made such deals in the last three years with HSBC Holdings Plc, Standard Chartered Plc, JPMorgan Chase & Co and Commerzbank AG. The agreements allow cases to be settled in return for fines and pledges by banks to prevent a recurrence of the violations.

Read on.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s