AMSTERDAM • ABN Amro Bank fell the most in over three years in Amsterdam trading after the authorities opened a criminal probe into the bank under anti-money laundering laws.
The bank failed to report suspicious transactions and did not conduct sufficient checks on its clients, said the prosecutor's office. The investigation started in response to a notification from the Dutch central bank.
ABN Amro said separately that it faces an investigation under the Dutch anti-money laundering and terrorist-financing law.
ABN Amro lost as much as 9.6 per cent in Amsterdam trading early yesterday.
The investigation comes after ING Group, the largest Dutch bank, last year paid €775 million (S$1.2 billion) to settle an investigation by the prosecutor after acknowledging "serious shortcomings" in customer due diligence to prevent financial crime.
The central bank responded by saying Dutch banks in general were not making enough effort to fulfil their role as gatekeepers of the financial system.
ABN Amro said in July that it needed to review all of its five million retail clients after receiving a warning from the Dutch central bank.
The bank took a €114 million provision for the checks in the second quarter, after already setting aside €85 million at the end of last year for stepping up financial crime prevention in commercial banking and the credit card business.