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Senator Warren Says DOJ Should Have Prosecuted Bank Officers

"Despite Deputy Attorney General Monaco's statement that the ... plea 'should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature,' the way that DOJ structured the plea agreement ensures that [the] Bank will not face the full range of penalties that Congress has enacted for banks that engage in criminal money laundering."
Elizabeth Warren, US Senator
"Despite Deputy Attorney General Monaco's statement that the ... plea 'should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature,' the way that DOJ structured the plea agreement ensures that [the] Bank will not face the full range of penalties that Congress has enacted for banks that engage in criminal money laundering."
Elizabeth Warren, US Senator

In connection with a recent bank settlement for AML compliance violations, Senator Elizabeth Warren criticized the DOJ for (i) failing to hold the corporate executives involved accountable and (ii) allowing banking regulators to shift liability to the bank's holding company. (See previous coverage.)

In a Letter to DOJ Attorney General Merrick Garland, Senator Warren characterized the bank's crimes as "egregious." She argued that the DOJ chose only to prosecute low level employees in the case rather than higher level executives, including the banks chief AML officer, despite his awareness of the issues. She said the DOJ was engaging in "legal gymnastics" by negotiating a plea to "conspiracy" to money launder rather than the actual money laundering, which shifted liability from the bank to its holding company and allowed the bank to avoid potential termination by the OCC. 

Senator Warren warned that this approach to accountability leads to banks simply factoring enforcement fines as the price for doing business, rather than approaching compliance seriously. She requested the DOJ provide the following information by November 15, 2024: (i) evidence or rationale for not charging the bank directly with money laundering; (ii) all DOJ communication with banking regulators during settlement discussions; (iii) rationale for charging the bank with "conspiracy" to fail in AML program implementation and filing Currency Transaction Reports; (iv) reasoning for not charging the entities' executives; (v) whether the settlement precludes future executive charges; and (vii) description of compensation clawbacks for executives

Primary Sources

  1. US Senator: Senator Warren's Letter to Attorney General Garland and Deputy Attorney General Monaco

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Tags

Individuals
Elizabeth A. Warren
Regulated Activities
AML Compliance Enforcement Procedures
Sub-Activity
AML Program
Regulated Entities
Regulatory Agencies
Body of Law
AML Regulation
Jurisdiction
US - Federal
Organization
US Congress