Dutch bank ING, which was under investigation in the Netherlands for “money laundering and corrupt practices”, has paid the sum of 775 million euros in an agreement with the authorities, the Dutch public prosecutor announced on Tuesday.
“ING Bank N.V. in Amsterdam has accepted and paid a settlement of 775 million euros proposed by the Dutch public prosecutor,” said the prosecution in a statement.
The payment includes a fine of 675 million euros and the reimbursement of one hundred million euros to the Dutch government, said the authorities.
The public prosecutor’s office, which opened a criminal investigation in March 2017, mentions “serious deficiencies in the prevention of money laundering” by ING.
“The bank did not prevent bank accounts of ING customers in the Netherlands from being used between 2010 and 2016 for the laundering of hundreds of millions of euros,” the statement said.
By not reporting unusual transactions, ING has not complied with the WwFT, the Anti-Money Laundering and Terrorist Financing Act, “for many years,” the prosecutor’s office said.
ING reacted in a statement saying it “regrets that this gap has allowed some customers to abuse ING accounts in the Netherlands.”
“As a bank, we have an obligation to ensure that our operations meet the highest standards, especially when it comes to preventing criminals from misusing the financial system,” said ING CEO Ralph Hamers.
“Failure to meet these standards is unacceptable and ING takes full responsibility,” he added.
ING said it took action against several employees and former employees charged with implementing the bank’s economic and financial crime policy. The company has also put in place new measures to strengthen its risk management.
The banking group said that fines will have an impact on the group’s third quarter results, and will be recorded under “exceptional items”.
“This agreement does not affect the strength of ING, the execution of our strategy and our commitment to our customers, our actions and other parties.”
The US authorities had also asked the bank for information regarding the case. However, ING does not expect any action from the US securities regulator.
