Rabobank Faces Court Over Alleged Lapses in Anti-Money Laundering Controls

Dutch financial giant Rabobank has announced that it has been unable to reach an out-of-court settlement with prosecutors in a case concerning the bank’s alleged failure to uphold national anti-money laundering laws. As a result, the Dutch Public Prosecution Service (OM) confirmed on Wednesday that it will now pursue the case in court.

According to the OM, the bank neglected critical compliance duties over several years, including the proper vetting of customers and the reporting of suspicious transactions. “For years, the bank failed to conduct customer research and report unusual transactions,” OM said in a statement. “Violating this law can have major social and economic consequences. Money laundering and financing of terrorism is a threat to the integrity of the financial system.”

The OM stated that the investigation, which was initiated following a report from De Nederlandsche Bank (DNB), focused on the period from October 2016 through the end of 2021. The probe is now in its final stages, and court hearing dates will soon be scheduled. “The Public Prosecution Service and the defense will schedule hearing dates with the court,” the OM said.

In response, Rabobank issued a statement expressing its cooperation with authorities and acknowledging the failure to reach a settlement. “Rabobank is fully cooperating with the investigation and has discussed an out-of-court settlement with the Public Prosecutor,” the bank stated. “However, there is such a difference of opinion regarding a settlement that the parties have not reached an agreement at this time. We understand that the Public Prosecutor will present the case to the court. At this time, Rabobank cannot provide additional information in this respect.”

Rabobank, a cooperative financial institution with a strong historical foundation in agricultural lending, is among the three largest banks in the Netherlands. The bank disclosed in December 2022 that it was under investigation for potential breaches of the country’s anti-money laundering laws.

This is not the first time Dutch authorities have taken such measures against a major financial institution. In recent years, both ING and ABN Amro were investigated and ultimately fined for similar violations. ING was penalized $900 million in 2018, while ABN Amro paid $574 million in 2021 following their respective settlements with prosecutors.

By fLEXI tEAM