Dutch banking group ABN Amro has hinted at possible fines over money laundering and made an additional provision of €114m for customer due diligence (CDD) remediation programme.
The move comes after the bank received orders from the Dutch central bank to review its retail clients in the country for possible money laundering.
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According to the bank, this will provide these clients with an appropriate risk profile that will facilitate transaction monitoring and filing of unusual transaction reports.
Almost four years ago, ABN Amro was fined by the Netherlands and Dubai watchdogs for serious shortcomings in its client acceptance and risk management processes.
Currently, ABN Amro has over 1,000 staff to combat financial crime.
The bank indicated that this headcount will rise “substantially” in the next few years.
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By GlobalDataThe bank noted: “In general, across the bank we will take all remedial actions necessary to ensure full compliance with legislation.
“We will remain fully committed to complying with all current and future anti-money laundering and terrorist financing legislation, and will continue to make the necessary investments.”
The latest move coincides with ABN Amro’s second-quarter earnings announcement.
The bank’s net profit for the three-month period ended 30 June 2019 stood at €693m, up 1% from €688m a year ago.
