The biggest bank in the Netherlands, ABN-Amro, has been embroiled in a money-laundering investigation. TheĀ banks valuation sank by 12%, resulting in a $2 billion stock market valueĀ loss going up in smoke.
Dutch prosecutors said the lender failed to do due diligence on its exclusive clients for years, moving to end perceived lax monitoring of suspicious transactions, which for years were reported too late or not at all.
This is the second systemic Dutch lender to suffer a similar investigation. In September 2018, ING was fined a record $900 million for failing to spot criminal activities financed through its accounts.
ABN Amro was warned in August that it faced possible money laundering fines after the Dutch central bank ordered it to review all retail clients in the Netherlands for possible money laundering activity.
The Dutch state owns 56% of ABN Amro and finance ministerĀ Wopke HoekstraĀ has asked the bank to explain why he had not been informed earlier about the investigation.
The bank said at the time that sanctions may be imposed by the authorities but said it hadnāt made a provision for a possible fine as the āamount cannot be estimated at this time.ā
Increased compliance costs and possible penalties add to the headwinds confronting European banks. Negative interest rates, lackluster economies, and Brexit are already taking a toll on profitability, forcing more lenders forcing the lenders toĀ pass rising costs on to customers.
āThereās so much uncertainty for the shareholders now,ā said KBW analyst Jean-Pierre Lambert by phone. āThe big question is whether thereās actual money laundering involved in this case. Thatās what the prosecutorās investigation probably is trying to find out.ā
Bloomberg / ABC Flash Point News 2019.
Banks are part of the problem, when most of the times they are in charge of the missions?
All the money in de bank is confiscated by the so-called stockholders, leaving the account holders and investors with paying the created debts?
Ponzi Scheme to Perform Economic Cannibalism?
That is what banks do, stealing your money under the disguise of investments?
With negative interest rates these economies are doomed?