The Netherlands public prosecutor has initiated an investigation against ABN Amro for allegedly failing to report money laundering and terrorism financing for years.
A spokesperson for the Netherlands Public Prosecution Service was quoted by the Financial Times as saying that the Dutch bank failed to carry out sufficient due diligence and monitoring of customers.
Additionally, the lender failed to report all doubtful transactions to the government’s Financial Intelligence Unit or its pace of reporting was akin to creeping like a snail.
The probe was launched after the Dutch central bank provided information to public prosecutor. Earlier, the central bank asked ABN Amro to examine all retail clients for possible money laundering.
The 50% Dutch government-owned bank said that it will extend its full cooperation into the investigation.
The lender this year agreed to invest an additional €220m to beef up its procedures after many scandals broke out at its rival firms.
In 2008, the bank was bailed out and re-privatised in 2015. It registered a net profit of €693m for the second quarter of this year, a marginal increase of 1% from one year ago.
ING was hit with a record €775m fine in 2018 after the Public Prosecutor found that the bank’s weak oversight allowed firm to launder hundreds of millions of dollars.
Recently, Rabobank was fined $369m by the US government on charges that the bank laundered millions of dollars for Mexican drug gangs.