Dutch Prosecutors Drop Money Laundering Charges Against Former Bank Chiefs

In a dramatic turn for Dutch banking, prosecutors announced on Wednesday that they will not pursue criminal charges against the former chief executives of two of the nation’s largest banks over allegations of anti-money laundering (AML) failings.

After lengthy investigations, prosecutors determined there was insufficient evidence to warrant charges against Ralph Hamers, the former chief of ING, and Gerrit Zalm, the ex-CEO of ABN Amro and former Netherlands finance minister.

The decision marks the conclusion of years of criminal inquiries into the two banking leaders. ING had faced a €775 million ($813 million) fine in 2018 for failing to prevent money laundering through customer accounts. Similarly, ABN Amro resolved its AML probe in 2021 by paying a €480 million settlement.

“The public prosecutor has come to the conclusion that there is insufficient legal and convincing evidence to pursue former ING manager Hamers for criminal acts,” prosecutors stated.

Hamers, who later served as the CEO of Swiss banking giant UBS, welcomed the decision, calling it “logical and just.”

Zalm, who could not immediately be reached for comment, is expected to issue a statement later, according to an ABN Amro spokesperson.

Zalm was named as a suspect in the ABN Amro case alongside several other high-profile figures, including former CFO and CEO Kees van Dijkhuizen, politician and banker Joop Wijn, and Chris Vogelzang, who resigned as CEO of Danske Bank in 2021 due to these allegations. Prosecutors stated that there was insufficient evidence to hold any of the men criminally responsible.

The investigation revealed that the ABN suspects had implemented measures intended to curb money laundering but were ultimately unsuccessful.

Janneke de Smet-Dierck, the incoming executive of the Anti-Money Laundering Authority (AMLA) and until recently a Dutch prosecutor, commented on the decisions, highlighting the challenges of proving personal criminal liability in large-scale AML violations within financial institutions.

“These decisions, taken after extensive investigations by the FIOD and under the direction of the Functional Public Prosecutor’s Office, emphasise how complex it is to establish personal criminal responsibility in the event of large-scale AML violations in financial institutions,” she said.

“Despite the serious shortcomings, it could not be demonstrated that the directors deliberately failed or missed opportunities to address the problems more quickly or effectively. This raises important questions about the scope of criminal liability within large organizations. Where is the boundary between administrative responsibility and personal punishability? And how do we ensure that supervision and compliance are organised in the future in such a way that the risks of money laundering are substantially reduced?”

De Smet-Dierck stressed the broader implications for the financial sector, adding, “Money laundering poses a serious threat to the rule of law and confidence in the financial system. Tackling it requires not only criminal law enforcement, but also strong co-operation between banks, supervisors and investigative authorities. These cases show that there is still a lot of room for improvement in the way we tackle this complex problem.

“The lessons learned from this should contribute to a more effective and preventive approach to money laundering risks. It remains a joint responsibility to make the financial system more resilient and to ensure that the standards we set are actually met,” she concluded.

By fLEXI tEAM