Volksbank faces fine over money laundering failings

The Volksbank, the parent bank of financial services companies  SNS, ASN and Regiobank, faces a fine for failing to check its clients properly for money laundering and links with terrorism.

The Dutch central bank has not yet said how high the fine will be because the investigation into the Volksbank has not yet been formally completed, the bank said on Friday. Volksbank is 100% owned by the Dutch state.

In addition, the central bank has said the Volksbank must come up with an improved strategy to monitor its customers by April 1. The investigation showed that the Volksbank has no overview of the risks associated with “certain types of clients, products, services and transactions”.

“We regret that we have not been able to fulfill our entire mission as gatekeeper, when it comes to client integrity,” chief executive Martijn Gribnau said at the presentation of the bank’s first half figures. “We will do all we can to eradicate the shortcomings within the central bank deadline.”

ING reached a €775 million out of court settlement with the public prosecution department for its money laundering failings, while ABN Amro was fined €480 million. Rabobank is also under investigation.

The Volksbank booked net profit of € €248 million in the first six months of this year, more than double last year’s H1 figure of €95 million – and better than the performance put in by the three biggest Dutch banks.