The settlement consists of a EUR 675 million fine and a EUR 100 million “disgorgement” payment, with the total amount taken as a one-time charge in the bank’s third-quarter results. The 100 million-euro payment “represents the underspend by ING Netherlands over the period in scope on staffing for implementation and execution” of customer due diligence policies and procedures.
The lender acknowledged “serious shortcomings” in executing customer due diligence policies to prevent financial crime at its Dutch unit from 2010 through 2016. ING is taking action against a number of current and former senior employees in relation to the case, though it expects to resolve the matter with the US Securities and Exchange Commission without further fines.
The investigation focused on the bank’s role in matters including unusual payments by VimpelCom to a company owned by an Uzbek government official.
VimpelCom, which has changed its name to Veon, pleaded guilty in 2016 to violating the US corruption laws and agreed to a USD 795 million settlement with US and Dutch authorities in a case related to its subsidiary in Uzbekistan. ING is suspected of failing to report unusual transactions or not reporting them in time.
ING has announced a raft of new measures intended to strengthen its compliance and know your customer requirements, including client risk committees across business unit and a program to strengthen the bank’s internal compliance culture.
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