Dutch bank ING Groep will pay 775 million euros (about $900 million) in a settlement with the Dutch Public Prosecution Service (DPPS) over its poor anti-money laundering controls which in some cases allowed customers to launder cash for years.
A DPPS investigation established 'serious' shortcomings at the lender, including that customer due diligence (CDD) files were missing or incomplete, clients were classified in the wrong segments and there was an insufficient availability of human resources.
It also found the bank failed to exit business relationships in a timely manner, and there was insufficient functioning of the post-transaction monitoring system.
Under the terms of the agreement, ING has agreed to pay a fine of €675 million and €100 million for disgorgement.
"ING sincerely regrets that as a result of the above shortcomings ING Netherlands did not adequately fulfil its role as gatekeeper to the financial system, helping fight financial crime," it said.
The fine is considered to be one of the biggest issued by Dutch prosecutors.
"The Dutch authorities have based the size of the fine on ING's financial strength and 'ability to pay'," ING explained.
It added that is has taken action, such as holding back remuneration, against a number of (former) employees in senior management positions who had a broader responsibility for the execution of financial economic crime CDD policies.
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