By Anthony Deutsch and Bart H. Meijer
The Dutch bank ABN Amro, AMSTERDAM (Reuters), said on Monday that it had reached a settlement of 480 million euros ($ 574 million) with prosecutors in the Netherlands over allegations of money laundering, which will affect the results of the first quarter.
ABN Amro said in a statement that it had agreed to pay a fine of 300 million euros and 180 million euros as a diversion, reflecting the severity, extent and duration of the identified shortcomings in combating money laundering.
The prosecution said in a statement that the investigation was continuing and that three former councilors, whom he did not name, had been identified as suspects who were said to be ‘effectively responsible for the breach’ of the money laundering law.
Danske Bank said on Monday that its chief executive, Chris Vogelzang, who had previously served on ABN’s executive board, had resigned after being targeted in a Dutch money laundering investigation.
The investigation into ABN began a year after fellow Dutch bank ING paid a record fine of 775 million euros to settle a similar case.
Although the ING settlement stated that no bank executives would be prosecuted, a Dutch court in December last year ordered a criminal investigation into the role of former CEO Ralph Hamers in the case.
Prosecutors accused ABN Amro in September 2019 of failing to locate money laundering accounts, failing to terminate its relations with suspicious clients and not reporting such transactions to the relevant authorities.
“This settlement is the end of a painful and disappointing episode for ABN Amro,” said CEO Robert Swaak.
“The lessons we have learned from this experience drive us in our sustained effort as gatekeepers to achieve a safer society and a financial system that meets the highest standards of integrity,” he said.
ABN said it regretted the case and that it was lacking in the fulfillment of its role as gatekeeper to combat money laundering. ‘
(Reporting by Anthony Deutsch and Bart Meijer; editing by Christopher Cushing and Stephen Coates)