03 April 2019Reading time: 2 minutes

In the past period, ING was confronted with several money laundering affairs. The Openbaar Ministerie claims that the Dutch division didn’t take enough action to prevent the money laundering for many years. To compensate this, ING agreed with a settlement of 775 million euro with the Openbaar Ministerie.

Early March the Dutch newspaper Trouw published that a bank account of the ING-branch in Moscow has been used to channel trough millions of euro’s from companies which were involved with money laundering. The bank would have known this for years but didn’t take enough action to stop these activities. For now it is uncertain if ING will be fined for this.

Only a few weeks later it was announced that ING is no longer allowed to take on new customers in Italy for the time being. Banca d’Italia claims that the control system of ING Italy has failed to prevent money laundering activities by certain clients. By now the Italian Central bank has received improvement plans from ING and in the meantime ING will continue to serve their current clients. The Italian activities represent 1,9 percent of ING’s balance sheet total.

The Newspaper NRC also claimed halfway March, that American pension funds have sued several banks in July 2018, amongst them ING, for manipulating the trade in Mexican bunds for years. At this moment it is unknown how much damage compensation the American pension funds are demanding and which amount of this claim ING will be accounted for.

In order to win back the trust of investors, ING announced during the Investor Day on March 25th, that they have disposed of 2.700 doubtful clients in 2018. In the next two years the bank will also analyse all the files of suspicious clients and invest millions of euro’s to improve their anti-money laundering policy.

ING also announced that they will continue to further integrate their Dutch and Belgium activities and to keep more focus on online. With the introduction of new digital services and earnings models, ING expects that the fee income will grow 5-10 percent.

Despite the negative publications in the past period, the stock price of the share (10,49 euro on March 25) is approximately 12 percent higher compared to early 2018. It remains to be seen if ING will regain the trust of investors.

The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

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24/01/2021 17:27:49