Dutch cooperative Rabobank said on Monday it had been ordered by the Dutch central bank to fix its customer due diligence practices and that it is facing a “punitive enforcement procedure.”
In a statement, Rabobank said it had received an instruction from De Nederlandsche Bank (DNB) on Oct. 12 to remedy deficiencies in its compliance with laws against money laundering. It said it was too early to say whether the procedure would result in a fine.
“These deficiencies mainly concern the execution, recording and outsourcing of client due diligence, transaction monitoring and reporting of unusual transactions,” Rabobank said in a statement.
The two other large Dutch banks, ING Groep NV and ABN Amro, each reached multimillion-euro settlements with public prosecutors over similar compliance failures in the past several years. Both banks were warned by the DNB about their weak enforcement of anti-money-laundering practices ahead of the settlements.
This article was originally posted on reuters.com