30; What is a Deferred Prosecution Agreement? A DPA is an agreement entered into between a prosecutor and a defendant in a criminal case whereby in exchange for successful completion of agreed-upon commitments, the criminal charges against the defendant will be dismissed in their entirety by the prosecutor. 31. What enforcement actions have had a significant impact on the AML landscape? Certain enforcement actions stand out because of the size of the penalties imposed on the institutions and/or the media attention they received. Examples would include: e Banking Organizations: © ABN Amro: In December 2005, ABN Amro was assessed an $80 million Civil Money Penalty (CMP) for failure to implement an adequate system of internal controls reasonably designed to assure compliance with U.S. AML laws and regulations. The CMP cited deficiencies within the North American Regional Clearing Center (NARCC), a unit within the New York Branch of ABN Amro that operated as a clearing center for funds transfers in U.S. dollars for members within the ABN Amro network and more than 400 third-party financial institutions. Specific findings included the following: « Failure to staff the compliance function and train compliance personnel adequately = Failure to file accurate and timely Suspicious Activity Reports (SARs) « Lack of formal procedures for collecting and reviewing due diligence and assessing the risks of foreign financial institutions accessing correspondent banking services = Lack of adequate monitoring of funds transfers for potentially suspicious activity, particularly funds transfers conducted by financial institutions independent of the ABN Amro network « Failure to incorporate information on subjects of previous SAR filings, terminated relationships, and publicly available information on shell companies into its suspicious activity monitoring program » Failure to investigate alerts and utilize the capabilities of its automated monitoring software to manage its money launde