ABN Amro flags possible money laundering fines in latest blow to shares
09 Aug 2019

ABN Amro (ABNd.AS) said it faces possible money laundering fines, which combined with a gloomy interest rate outlook overshadowed an unexpected quarterly profit rise, knocking the Dutch bank’s shares on Wednesday.

The Dutch central bank (DNB) has ordered ABN to review all retail clients in the Netherlands for possible money laundering or other criminal activities, and warned that these investigations could lead to fines for the bank.

Banks have been forced to keep better track of client behavior after Dutch bank ING ING.AS was forced to pay a record $900 million fine in September for failing to spot criminal activities financed through its accounts.

Beyond the Netherlands, Denmark’s Danske Bank (DANSKE.CO) is involved in a money laundering scandal in Estonia, and Germany’s biggest, Deutsche Bank (DBKGn.DE), also faces money laundering allegations.

ABN said it took extra measures to increase customer due diligence at a cost of 114 million euros ($128 million) in the second quarter, and has now dedicated more than 1,000 employees to the fight against money laundering.

“Across the bank, we will take all remedial actions necessary to ensure full compliance with legislation”, Chief Executive Kees van Dijkhuizen said.

By Bart Meijer, Reuters, 7 August 2019

Read more at Reuters

Photo (edited): Donald Trung Quoc Don (Chữ Hán: 徵國單) – [CC BY-SA 4.0], via Wikimedia Commons

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