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Rabobank must reexamine thousands of files

AML/CFT: Rabobank must reexamine thousands of accounts, DNB says
09-12-2019

After earlier AML-related issues surfaced involving ABN Amro and ING, the Rabobank now appears to be next in line. The Dutch AML/CFT supervisory authority (De Nederlandse Bank or DNB) imposed an order subject to a penalty, because Rabobank allegedly did not adequately screen substantial amounts of its clients. Rabobank confirms that around 40,000 clients have been ‘potentially incorrectly’ assigned a low-risk profile and that it now needs to perform a reassessment of these clients.

Inadequate risk assessment of clients

Under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (the Dutch abbreviation: Wwft), financial institutions such as banks need to examine their clients and their transactions for potential risks related to money laundering. Supposedly, bank employees regularly come across clients whose associated risks wrongfully have been rated too low. From time to time, inspectors allegedly even stumble upon clients who should not have been accepted as a client at all. This pertains mostly to e.g. businesses in high-risk sectors (such as real estate or crypto currency), cash-intensive businesses and to businesses that have bank accounts and/or business relationships in certain countries (predominantly in Eastern-Europe or Africa).

More information on this topic

Please check our website for more information and publications on this topic. Currently, most articles are published in Dutch, but more articles in English about this and related topics will follow. If you have any questions, feel free to contact our KYB-team. Our ‘KYB team’ advises, and if necessary litigates, in order to prevent your bank from closing your business’s bank account(s) and/or withdrawing its funding.

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