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Money Laundering: Investors Initiate Legal Action Against ING for Over Half a Billion Euros in Damages!

ING Bank under fire over money laundering issues
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A group of over 130 institutional investors took legal steps against ING and certain former executives, issuing a writ of summons for damages exceeding €600 million. This action stems from accusations against ING for failing to disclose crucial information regarding alleged corrupt activities and breaches of anti-money laundering laws at ING Bank. This lawsuit follows a substantial €775 million fine paid by ING in 2018 for similar violations.

The legal claim leverages details from multiple authority investigations into ING Bank’s adherence to the Anti-Money Laundering and Counter Terrorism Financing Act. These investigations highlighted severe deficiencies in ING Bank’s financial crime and customer due diligence policies, dating back from at least 2010 to 2018. Notably, it wasn’t until March 13, 2017, that ING publicly admitted to criminal investigations by Dutch and U.S. authorities regarding its AML compliance failures, following internal reports of structural problems within its Corporate Audit Services.

On September 4, 2018, ING Bank accepted a €775 million fine as part of a settlement for longstanding and structural violations of anti-money laundering and counter-terrorism financing laws. This settlement and the details that emerged led to a notable decline in ING’s share price, reflecting the market’s reaction to the extent of ING’s compliance failures and the subsequent cover-up efforts.

The legal pursuit by the Dutch law firm DRRT and Finch Dispute Resolution aims to hold ING and its former officers and directors accountable for their failure to inform the market timely about the bank’s illegal practices, which directly resulted in considerable losses for ING’s investors. The case highlights the broader implications of inadequate AML/KYC practices and the importance of transparency to shareholders.

This lawsuit against ING underscores the ongoing legal and regulatory challenges faced by major financial institutions, further exemplified by ING being sued by victims of binary options scams facilitated by its subsidiary Payvision. These developments emphasize the need for rigorous compliance frameworks within the banking industry to prevent illicit activities and protect investor interests.

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