Rabobank has received a draft instruction from DNB
Rabobank received a draft instruction (voorgenomen aanwijzing) from the Dutch Central Bank (DNB) on 12 October 2021. In this draft instruction, DNB orders Rabobank to remedy deficiencies in its compliance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financiering van terrorisme, Wwft). These deficiencies mainly concern the execution, recording and outsourcing of client due diligence, transaction monitoring and reporting of unusual transactions. DNB has also announced that a punitive enforcement procedure will be started, the outcome of which is not yet known.
The draft instruction follows the injunction (Last onder Dwangsom) Rabobank received from DNB in September 2018 ordering the bank to improve its Know Your Customer (KYC) activities. Beginning 1 April 2020, DNB carried out an investigation and concluded that Rabobank Retail NL did not meet the requirements of the injunction, despite all efforts. As a result, Rabobank announced on 11 February 2021 that a penalty (dwangsom) of EUR 500,000 had been forfeited.
Wiebe Draijer, Chairman of the Executive Board: “As a cooperative bank with a mission, Rabobank is at the heart of society: Growing a better world together. It goes without saying that protecting our customers, members and society against financial crime is part of this mission. We view the role of gatekeeper to the financial system as our commitment and joint responsibility to society. While we have made improvements, much remains to be done. Therefore, we remain dedicated to, and continue to invest in our KYC program, with 4,500 specialists around the world. Building a robust and future-proof KYC organization is an ongoing process and has our full attention. Rabobank is in constant dialogue with DNB on this.”
Parts of this press release are considered by Rabobank to be insider information that directly or indirectly relates to Rabobank as referred to in Article 7 of the Market Abuse Regulation (EU 596/2014) which is disclosed in accordance with Article 17 of the Market Abuse Regulation.
Published: November 15 2021, 17:30 CET