ABN Amro to pay regulators $80 million

WASHINGTON, DC – ABN Amro Bank has been charged $80 million in penalties for violations of anti-money laundering (ALM) laws, according to an announcement by the Federal Reserve System (Fed) in mid-December.

The agencies have assessed penalties based on findings of unsafe and unsound practices; on findings of systemic defects in ABN Amro's internal controls to ensure compliance with US AML laws, which resulted in failures to identify, analyse and report suspicious activity; and on findings that ABN Amro participated in transactions that violated US sanctions laws.

The Federal Reserve Board and OFAC have assessed a penalty of $40 million, payment of which will satisfy the penalty concurrently assessed by the Financial Crimes Enforcement Network of $30 million.

The New York State Banking Department has assessed a monetary payment of $20 million, the Illinois Department of Financial and Professional Regulation has assessed a penalty of $15 million, and ABN Amro will make an additional $5 million voluntary payment to the Illinois Bank Examiners' Education Foundation.

The order requires ABN Amro to improve its global compliance and risk management systems to ensure adequate oversight, effective risk management and full compliance with applicable US laws and regulations. It largely supersedes the July 23, 2004 agreement between ABN Amro, its New York branch, the Federal Reserve Bank of New York, the Federal Reserve Bank of Chicago, New York State Banking Department and the Illinois Department of Financial and Professional Regulation.