Rabobank announced Monday that the Dutch Central Bank (DNB) in October ordered it to “remedy deficiencies in its compliance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act.”

The DNB warned Rabobank it intends to start a “punitive enforcement procedure,” the outcome of which is not yet known, Rabobank said.

The AML deficiencies “mainly concern the execution, recording, and outsourcing of client due diligence, transaction monitoring, and reporting of unusual transactions,” Rabobank stated.

The Dutch-based cooperative bank received an injunction from the DNB in September 2018, in which it was ordered to improve its know your customer (KYC) activities. Following an investigation that began in April 2020, the DNB concluded Rabobank Retail “did not meet the requirements of the injunction.”

As a result, Rabobank in February was ordered to pay a penalty of €500,000 (U.S. $565,000).

“While we have made improvements, much remains to be done,” said Wiebe Draijer, chairman of the executive board at Rabobank. “Therefore, we remain dedicated to, and continue to invest in, our KYC program, with 4,500 specialists around the world. Building a robust and future-proof KYC organization is an ongoing process and has our full attention. Rabobank is in constant dialogue with DNB on this.”

Jaclyn Jaeger is an editor with Compliance Week and has written on a wide variety of topics, including ethics and compliance, risk management, legal, enforcement, technology, and more.

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