Fine for de Volksbank N.V. for deficient anti-money laundering controls

Tackling money laundering is a priority for the government because it is key to effectively fighting all manner of serious crime. Concealing the origin of criminal proceeds enables perpetrators to steer clear of the investigative authorities and enjoy their ill-gotten gains undisturbed. The Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en terrorismefinanciering – Wwft) aims to ensure that our financial system is not abused for money laundering and terrorist financing. Under this legislation, banks act as gatekeepers and are obliged to carry out anti-money laundering controls. This means that banks must know who their customers are, where the customers’ money comes from and what customers intend to do with financial products, e.g. payment accounts. Banks run the risk of giving malicious parties access to its financial products. Once customers are through the gate, the bank must monitor them on an ongoing basis and report unusual transactions to the Financial Intelligence Unit (FIU-NL) so that the investigative authorities can examine suspicious transactions.

Non-compliance

DNB examined how de Volksbank analyses and assesses its money laundering and terrorist financing risks. We also examined customer files and conducted interviews with relevant stakeholders of the bank. This examination revealed that de Volksbank does not adequately monitor its customers and therefore fails to identify risks or fails to identify risks in time.

In addition, we found that, although de Volksbank has a system that generates alerts about customers and their transactions, the system is not functioning properly. Moreover, de Volksbank fails to take action (or fails to take sufficient action) following an alert, which has led to major backlogs in following up on these alerts. De Volksbank is now being fined for this instance of non-compliance with the law.

Fine due to severity of non-compliance

DNB’s enforcement approach is aimed at compliance with the Wwft, where a risk-based approach in preventing and combating money laundering is expected from banks.

From 2013 to 2022, we conducted multiple examinations of de Volksbank’s compliance with the Wwft, during which we identified various instances of non-compliance with the Wwft that we found to be both serious and culpable. We have therefore taken enforcement action on several occasions. However, this has not resulted in sustained compliance with the Wwft by de Volksbank. There has been a great deal of emphasis on Wwft compliance within the banking sector in recent years. We have therefore decided to impose a punitive fine on de Volksbank due to the severity of the non-compliance with Section 3(2)(d) of the Wwft.

Amount of the fine

The administrative fine for de Volksbank’s non-compliance has been set at €5 million, in accordance with the DNB General fine calculation policy (Algemeen boetetoemetingsbeleid DNB). 

In determining the amount of the fine, DNB considered that de Volksbank is a large institution with considerable resources. It also took into consideration that the non-compliance is of a serious nature as well as de Volksbank’s culpability for the non-compliance. At the same time, DNB has been mindful of the measures that de Volksbank has initiated so far to address the deficiencies. Furthermore, the constructive and receptive attitude with which de Volksbank is focusing on remediation were given positive consideration. On balance, and taking into account these circumstances, a fine of €5 million was appropriate and warranted.

Objection

de Volksbank has six weeks from receipt of notification of the fine to lodge an objection.

Read the full decision below (in Dutch), excluding confidential information. For further information, please contact DNB’s Information Desk at telephone number 0800 - 020 1068 (free of charge) or +31 20 524 9111 (if calling from abroad).

Current status

The table below shows the current status of this decision.