Case 1:10-cr-00124-CKK Document 16

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES OF AMERICA : : v. : : The former ABN AMRO BANK N.V., : now known as : THE ROYAL BANK OF SCOTLAND N.V., : : Defendant. :

CRIMINAL NO. 10-124 (CKK)

GOVERNMENTS MOTION TO DISMISS CRIMINAL INFORMATION WITH PREJUDICE Pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure, the United States Attorneys Office for the District of Columbia, along with the Asset Forfeiture and Money Laundering Section of the Criminal Division of the United States Department of Justice (collectively, the United States), hereby moves to dismiss the Criminal Information filed in the above-captioned case against the defendant, the former ABN AMRO BANK N.V., now known as ROYAL BANK OF SCOTLAND N.V. (hereinafter RBS N.V.). As grounds for this motion, the government states as follows: 1. On May 10, 2010, the United States filed a Criminal Information charging RBS N.V. with: (1) knowingly and willfully conspiring to defraud the United States Department of Treasury and the Office of Foreign Assets Control (OFAC), to commit violations of the regulations promulgated under the International Emergency Economic Powers Act (IEEPA), Title 50, United States Code, Section 1705, and to commit violations of the regulations promulgated under the Trading with the Enemy Act (TWEA), Title 50, United States Code Appendix, Sections 1-6, 7-39 and 41-44; and (2) willfully failing to establish an adequate antimoney laundering program in violation of Title 31, United States Code, Section 5318(h) and 5322.

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2. On the same date, May 10, 2010, the United States and RBS N.V. entered into a oneyear deferred prosecution agreement (DPA), which was filed with the Court. The DPA required, among other things, that RBS N.V. and its employees acknowledge responsibility for its criminal conduct, which included: (a) methodically removing or falsifying references from outgoing United States Dollar payment messages that principally involved countries such as Iran, Libya, the Sudan and Cuba, banks from those countries, or persons listed as parties or jurisdictions sanctioned by OFAC; (b) advising sanctioned entities on how to evade automated filters at financial institutions in the United States; and (c) willfully failing to establish an adequate Bank Secrecy Act and anti-money laundering procedures or to conduct effective due diligence reviews concerning foreign correspondent accounts. 3. As part of the DPA, RBS N.V. agreed to the following conditions: (a) to forfeit $500,000,000.00; (b) to continue to cooperate with the United States; (c) to terminate the conduct at issue in the DPA and referenced in the factual statement attached to the DPA (the Factual Statement); (d) to demonstrate its good conduct and full compliance with international Anti-Money Laundering and Combating Financing of Terrorism best practices and the Wolfsberg Anti-Money Laundering Principles for Correspondent Banking (Wolfsberg Principles); and (e) to settle any and all civil and criminal claims currently held by the United States for any act within the scope of, or related to the Factual Statement. The DPA was originally scheduled to expire on May 10, 2011. 4. Pursuant to paragraph 5(ii) of the DPA, if RBS N.V. fully complies with all of its obligations under the DPA, the United States would seek dismissal with prejudice of the Information filed against [RBS N.V.]. 5. On April 5, 2011, the parties filed a Joint Motion for Approval of Extension of Deferred Prosecution Agreement and Exclusion of Time under the Speedy Trial Act. The parties

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asked for the extension to address concerns raised by federal and state bank regulators following bank examinations of RBS N.V.1 On April 6, 2011, the Court granted the joint motion, and ordered the DPA extended until December 31, 2011. 6. With respect to RBS N.V.s obligations under the DPA, the United States understands and now states that: (a) RBS N.V. forfeited the $500,000,000.00 to the United States; (b) RBS N.V. has met its obligation of cooperating with the United States; (c) RBS N.V. voluntarily terminated the conduct at issue in the DPA and Factual Statement; (d) RBS N.V. is in compliance with international Anti-Money Laundering and Combating Financing of Terrorism best practices and the Wolfsberg Principles; (e) RBS N.V. has settled any and all civil and criminal claims currently held by the United States; and (f) RBS N.V. is addressing the issues raised by the regulators in their Cease and Desist Order. 7. As further set forth below, the United States has also conducted its own targeted due diligence in an effort to verify that RBS N.V. has complied with the provisions of the DPA: (a) A search of relevant law enforcement databases resulted in no information that would indicate RBS NV did not comply with the provisions of the DPA;

On July 26, 2011, the Board of Governors of the Federal Reserve System, the New York State Banking Department, the State of Connecticut Department of Banking, and the Illinois Department of Financial and Professional Regulation entered into a Cease and Desist Order with RBS N.V. (among other related entities of The Royal Bank of Scotland) directing The Royal Bank of Scotland to strengthen corporate governance, board oversight, Bank Secrecy Act and anti-money laundering compliance, and Office of Foreign Assets Control compliance at The Royal Bank of Scotlands U.S. operations.

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(b) A review of relevant bank records identified through targeted searches has not identified any information that would indicate that RBS NV did not comply with the provisions of the DPA; (c) Searches of publicly available information have not identified any

information that would indicate that RBS NV has not complied with the provisions of the DPA. 8. Given that RBS N.V. has now met the terms and obligations of the DPA, and has not otherwise breached the DPA, the United States submits that dismissal is appropriate under the circumstances and pursuant to the DPA as agreed to by the parties. WHEREFORE, pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure, the United States respectfully requests this Court grant its motion to dismiss the Criminal Information filed in the instant case with prejudice. A proposed order is attached. Respectfully Submitted, RONALD C. MACHEN, JR. UNITED STATES ATTORNEY JENNIFER SHASKY CALVERY, Chief Asset Forfeiture and Money Laundering Section /s/ ________ _ Matthew S. Haslinger Trial Attorney Asset Forfeiture and Money Laundering Section U.S. Department of Justice 1400 New York Avenue, N.W. Washington, D.C. 20005 (202) 514-1263

By:

/s/ George P. Varghese Assistant United States Attorney 555 4th Street N.W., Room 11-907 Washington, DC 20530 (202) 252-7800 George.Varghese@usdoj.gov

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES OF AMERICA : : v. : : The former ABN AMRO BANK N.V., : now known as : THE ROYAL BANK OF SCOTLAND N.V., : : Defendant. :

CRIMINAL NO. 10-124 (CKK)

ORDER Presently pending before this Court is the Governments December 20, 2011 Motion to Dismiss Criminal Information With Prejudice in the above-captioned case filed pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure. Having carefully considered this request, it is hereby: ORDERED that the Governments Motion is granted and the Criminal Information in the above-captioned case is hereby dismissed with prejudice. DONE AND ORDERED in chambers in Washington, D.C., on December ____, 2011.

____________________________________ JUDGE COLLEN KOLLAR-KOTELLY UNITED STATES DISTRICT COURT JUDGE