31 Dec 2018
Banks need to step up the fight against money laundering and accept lower profits in return, European Central Bank board member Klaas Knot said, after a year in which investigations into criminal use of accounts implicated several EU lenders.
“Banks need to adhere to rules and laws under any circumstance. This has its costs, automatically lowering profitability”, Knot, also president of Dutch central bank DNB, said in an interview with Dutch newspaper NRC published on Friday.
“I doubt this is already reflected in the profits banks promise investors.”
Banks try to minimize compliance costs in order to keep profits up, Knot said in a reference to Dutch bank ING (INGA.AS), which this year paid a record $900 million fine for systematically failing to spot money laundering through its accounts.
– By Bart Meijer, Reuters, 28 December 2018.
Link to Reuters.
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet