November 29, 2022

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ABN Amro spends more on money laundering checks;  High rate of payment account

ABN Amro spends more on money laundering checks; High rate of payment account

ABN Amro has once again lost more money in money laundering checks. The Bank has allocated 50 million euros for this purpose. In addition, the bank will increase checking account rates from July 1 to absorb part of these costs.

ABN announced a quarterly profit of €295 million. Last year there was a loss in the same quarter, due in part to a settlement with DPP. Due to insufficient controls on money laundering, the bank was forced to pay 480 million euros.

More expensive checking account

Although ABN Amro made a profit for the last quarter in a row, according to the bank, it is necessary to increase the costs of the current account. The checking account rate will increase by 50% from 1.95 per month to 2.95. The costs of the second debit card increase by approximately 30 percent.

“This is necessary because the costs we incur to maintain the integrity of payment transactions are increasing,” says Robert Soak, CEO of the bank. “One in five employees at ABN Amro is working on this. You cannot avoid charging a portion of these costs. In addition, we continue to invest in product innovation and product development.”

Earlier this year, the Consumers’ Association calculated that current account costs in Dutch banks have increased by 42 per cent in the past five years.

war

ABN Amro is relatively unaffected by the war in Ukraine. This is because the bank does relatively little business with Russia and Ukraine. In the rival company ING, profits were halved due to the war in Russia.

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ABN expects that more customers will run into problems due to slowing economic growth and rising inflation. To absorb those blows, the bank put 62 million into the gallows.