Can a bank refuse credit based on money laundering regulations to someone who has been a customer for years, but relies primarily on cash for its turnover? This question is the focus of summary proceedings brought by a scrap dealer against Rabobank.
The metals trader wanted to acquire a marina in Maastricht for 2.5 million euros and submitted a loan application to Rabobank – which was initially approved, the FD newspaper writes. But after a money laundering investigation, the bank withdrew approval, exactly one day before the transfer in January. Because the trader’s name was also involved in this investigation and that was a “red flag” for the bank in whose books the man had been registered for twenty years without any problems.
22 million paid in cash
The trader now wants to use summary procedures to force the extension of credit. Last week, it became unclear to the judge why Rabobank was withdrawing. The bank employee couldn’t have come more clearly than “there were signals.” The dealer bought €32 million worth of scrap last year, €22 million of which was paid in cash. The bank believes that the company must first reduce cash flows to a minimum before reaching an agreement to finance the marina.
According to the man, the company is trying to switch to cashless payment, but many customers do not like it. He seems able to rely on the judge’s understanding: “I’ve known this company for years.” What’s new in this cash flow?’ He asked the bank in vain. The ruling will be announced within two weeks.
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