ING Bank exec resigns after $900 million money laundering fine
12 Sep 2018

Dutch banking group ING has announced that its chief financial officer will step down after it was fined €775 million (about $900m) for poor anti-money laundering controls, including client on-boarding and customer due diligence issues.

CFO Koos Timmermans (pictured) was also a member of the Management Board Banking during the case’s investigated period (2010-2016) and for several years was ‘end-responsible for ING Netherlands,’ ING explained.

“We deeply regret the shortcomings found and take this matter very seriously,” said Hans Wijers, chairman of the Supervisory Board of ING.

“Given the seriousness of the matter and the many reactions among stakeholders since the announcement and in the interest of the bank, we came to the conclusion it is appropriate that responsibility is taken at Executive Board level.”

Timmermans joined ING in 1996 and was a member of the executive team since 2007 when he was appointed as the company’s first chief risk officer on the Executive Board.

In 2014 he assumed responsibility for the Market Leaders division, and was appointed chief financial officer in 2017.

“We want to thank Koos for his many years of dedication to ING,” Wijers said.

“His efforts to align the bank’s balance sheet with new and upcoming regulation have strongly contributed to the robust financial foundation ING has today.”

When announcing the multimillion euro settlement with the Dutch Public Prosecution Service (DPPS) last week, ING said it taken action against senior employees, such as on remuneration.

“ING has initiated measures against a number of (former) senior employees with broader responsibility for the safeguarding and execution of FEC CDD policies and procedures in ING Netherlands, including holdbacks of variable remuneration and suspension of duties,” it said in a statement.

Timmermans appears to be the first top boss to go.

Apart from the DPPS, the US Securities and Exchange Commission (SEC) has also conducted an investigation regarding the bank’s anti-money laundering failures.

“ING has received a formal notification from the SEC that it has concluded its investigation. In the letter the Division of Enforcement states that, based on information as of this date, it does not intend to recommend an SEC enforcement action against ING,” the lender explained.

– Irene Madongo

STORY UPDATE: Following the announcement of Timmermans’ resignation earlier on Tuesday, KYC360 asked ING if more individuals were expected to resign over the matter. A spokesman responded: “After last week’s announcement the Supervisory Board spoke to many stakeholders in politics and society and came to the conclusion, together with the Executive Board that the step announced today would be appropriate. Other than that we have nothing new to report on that front.”

Read more:

Money laundering: ING bank fined €775m over due diligence, client on-boarding

EU drafts new money laundering laws following bank scandals

Money laundering at Danske Bank: Lessons for financial crime professionals (Part 2)

Confessions of a compliance officer: The risk-based approach goes wrong

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