I have written about DPA‘s before, so, it shouldn’t be surprising to find out that there is an NPA as well. Obviously, NPA is a better deal than a DPA, although often a DPA is a de facto NPA.
Leslie Caldwell, Assistant Attorney General, is reported to having told ACFE (Association of Certified Fraud Examiners) that NPA’s and DPA’s may be taken back and financial institutions could be forced to plead guilty.
This isn’t earth shattering news for big banks since most of them have plead guilty to something over the last couple of years. Caldwell’s statement comes when many of the major problems of the 2008 financial crisis are coming to a close, raising concerns about whether legal reserve funding has been adequate. The fines have been, at times, in the tens of billions of dollars, so this is a big deal. One bank, does doesn’t matter which one so I won’t name it, was fined more than the income earned on the activity that generated the income to begin with. These fines are no longer just a slap on the wrist. It is a warning for bank to brace themselves. And they had better make sure their businesses are ready to comply going forward, not just mitigate the damages of the past. Otherwise, they will be facing negative returns.
Marcus Maltempo is a Certified Anti-Money Laundering Specialist and a Certified Fraud Examiner with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.