ING Spain Fined €3.91 Million for “Very Serious” AML Violation

The Spanish branch of Dutch banking giant ING has been hit with a €3.91 million fine for what authorities have classified as a “very serious” breach of anti-money laundering (AML) regulations. Spain’s anti-money laundering authority, SEPBLAC, also issued a public reprimand, stating that ING failed to report suspicious transactions as mandated by Spanish law.

The penalty is based on ING’s violation of Article 18 of Law 10/2010, which requires banks, auditors, notaries, and other regulated entities to report suspected money laundering or terrorism financing. The law mandates that financial institutions immediately notify authorities if a manager or employee detects potential criminal activity. ING Spain’s failure to comply with this obligation led to the sanction.

An official notice confirmed the bank’s non-compliance, stating: “Ing Bank NV, branch in Spain, is sanctioned for a very serious infringement of the regulations on the prevention of money laundering.”

The Spanish government had approved the fine in July 2023, but the decision was only recently published in the Official State Gazette (BOE). The notice further specified, “The Council of Ministers agrees to impose a sanction consisting €3,919,300 and a public reprimand.”

Following the ruling, ING acknowledged the penalty and expressed its cooperation with authorities throughout the investigation. A spokesperson for the bank stated: “ING has actively collaborated since the beginning of the inspection, facilitating the process at all times and making all the required information available.” The bank also confirmed that it has implemented corrective measures to address the deficiencies identified by SEPBLAC.

This is not the first time ING has faced penalties for AML compliance failures. In 2018, the bank paid nearly $800 million in the Netherlands after Dutch prosecutors determined that ING clients had used its accounts to launder hundreds of millions of dollars. At the time, ING admitted to significant shortcomings that had allowed customers “to use their bank accounts for money laundering practices for years.” Former CEO Ralph Hamers responded to the scandal by asserting that the company had taken “drastic measures” to prevent similar violations in the future.

By fLEXI tEAM