As CCO, Laura Akahoshi was responsible for overseeing Rabobank’s Bank Secrecy Act and anti-money laundering (BSA/AML) compliance program, supervising the bank’s BSA/AML officer, and advising the board of directors on compliance and regulatory matters, the OCC stated.
Akahoshi also was responsible for “‘ensuring clear communications between the bank and national and international regulatory authorities,’ as well as for ‘providing advice to executive management and the board on matters that could impact how the bank is perceived by its regulator,’” the OCC said.
Withholding Information
In November 2012, the OCC conducted an on-site examination of the bank’s BSA/AML compliance program. According to the OCC’s allegations, Akahoshi “improperly withheld information from OCC examiners” during its on-site examination.
See related article, “Former Chief Compliance Officer Gets Three Years in Prison for Wire Fraud.”
In December 2012, the bank engaged Crowe Horwath to perform a BSA/AML program assessment, in which Crowe uncovered “significant deficiencies in the bank’s BSA/AML compliance program.”
According to the OCC, throughout communications with the OCC, enforcement counsel characterized Akahoshi’s communications as “evasive and misleading,” while Akahoshi characterized her communications as “reflecting an honest effort to summarize information gathered from bank officers—such as CEO Ryan and GC Weiss—who had more direct knowledge of the Crowe engagement.”
Rabobank CCO Case Dismissed
While the events at issue “occurred during a short three-week period in 2013, its considerable and lengthy procedural history… has extended the matter to the present day,” the OCC said. Fast-forward a decade later, in dismissing the $30,000 penalty against Akahoshi, the OCC said, “upon scrutiny,” it became “evident” the administrative law judge in the case did not fully address certain documents and testimony favoring Akahoshi. Thus, she was not fully able to defend herself.
“While the Comptroller does not condone [Akahoshi’s] alleged actions…the delay in this action would likely make it difficult for witnesses to accurately recall the events in question and their attendant states of mind,” the OCC said in its order. “More than 10 years have passed since the events that gave rise to this matter. Accordingly, in an exercise of his plenary discretion over remedies, the Comptroller hereby orders that the action be terminated and the outstanding Notice of Charges and Assessment be dismissed. Because this action is now dismissed, the remaining issues raised in the Parties’ exceptions and any pending motions are moot.”
In February 2018, Rabobank N.A. pleaded guilty and agreed to forfeit $369 million “as a result of allowing illicit funds to be processed through the bank without adequate BSA or AML review.” It was also assessed a $50 million penalty by the OCC for deficiencies in its BSA/AML compliance program. 
Jaclyn Jaeger is a contributing editor at Compliance Chief 360° and a freelance business writer based in Manchester, New Hampshire.