Compliance
Compliance Corner: Dutch National Bank, ABN AMRO
The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.
ABN AMRO, Dutch Central Bank
The Dutch Central Bank has imposed an administrative fine of €15
million ($17.19 million) on ABN AMRO for violating the
bonus prohibition over the period from 2016 to 2024.
Policymakers introduced the bonus ban among reforms following the
2008 financial crash. The prohibition states that board members
and management in the second echelon of banks receiving state
support cannot receive bonuses.
The ban has applied to the Dutch bank’s executive board since
2012; it was widened to the second management echelon in
2015.
The Dutch central bank has determined that ABN AMRO wrongly
failed to apply the bonus prohibition to seven positions in the
second echelon during the specified period, according to a
statement from ABN AMRO.
“Although ABN AMRO interpreted and applied this legislation in
good faith, the bank acknowledges that its viewpoint was
incorrect. ABN AMRO regrets this, is aware of the possible
societal impact and accepts the fine of €15 million," it said.
