The U.S. is investigating whether the Netherlands’ Rabobank Groep ignored signs of money laundering by clients at branches of its California banking unit near the Mexican border, according to people with knowledge of the matter.
The criminal investigation is being conducted by Justice Department prosecutors in Washington and the U.S. Attorney’s Office in San Diego, said two people who asked not to be identified because the inquiry is confidential. The probe could trigger additional enforcement action against Rabobank, which is still being monitored by the Justice Department after admitting wrongdoing in a 2013 settlement over interest-rate manipulation.
