The Dutch central bank has fined ABN Amro €15 million for paying unauthorised bonuses to senior managers, in what it described as a “very serious” breach of Dutch banking rules.

The bank, which is still partially state-owned, continued to pay bonuses to seven managers in the tier just below board level, despite clear instructions from the regulator that this was not allowed. The payments, totalling €1.5 million, were made between 2016 and 2024.

“From a professional market participant such as ABN Amro, it may be expected that it is aware of the rules that apply to it and that it complies with them,” the central bank said on Thursday.

The regulator also found that one of the managers received salary increases well above what was permitted under the banking sector’s collective labour agreement. Over two consecutive years, the individual received pay rises of 11.4% and 28.8%, while the agreed increases for regular staff were 1.5% and 2.5%.

Bonus rules

Since 2015, Dutch banks may award bonuses of no more than 20% of base salary, compared to 100% under EU rules.

For banks that have received state support — such as ABN Amro and the Volksbank — the rules are even tighter, banning variable pay and excessive pay rises for directors and senior managers.

The bank initially halted the bonuses when the central bank intervened, but later resumed and even expanded the practice.

“The bank knowingly allowed the breach of the bonus ban to continue for a prolonged period, in defiance of explicit instructions from the regulator,” the central bank said.

ABN Amro said it accepts the fine. “Although we applied the bonus rules in good faith, we acknowledge that our interpretation was incorrect and regret this,” the bank said in a statement.