Rabobank has settled a long-running charge that one of its US subsidiaries – RNA – laundered money for Mexican drugs cartels and deliberately withheld information from the authorities.

The settlement means Rabo will not have to undergo prosecution in the US, the Volkskrant said on Thursday.

The bank has forfeited nearly $370m (€298m) for anti-money laundering funds that authorities say allowed untraceable money transfers on behalf of criminals and for hiding information from US regulators. That includes a $50 million fine the bank will pay to the US treasury.

The case involves a RNA branch in Calexco, a US city on the Mexican border, which US authorities had been monitoring since 2006. A formal investigation on laundering Mexican drugs money through three accounts at the branch was launched in 2013.