U.S. authorities are investigating a leading Dutch bank for alleged dealings with countries under trade sanctions, such as Cuba and Iran, that could draw a fine of "several hundred million" dollars, according to news reports.
Other European banks have paid at least $635 million over the past decade for transactions with Cuba that violate U.S. embargo or counter-terrorism laws. Cuba, Iran, Syria and Sudan are on the U.S. list of state sponsors of terrorism.
The U.S. inquiry targets ING Bank, part of the Dutch financial services giant ING Groep, the Reuters news agency quoted an ING spokesman as saying on Wednesday.
“We don’t know how the investigations in the U.S. will pan out and cannot estimate what the fines, if any, will be. Fines could be significant. We are cooperating fully with U.S. authorities,” the spokesman was quoted as saying.
He spoke after the Dutch newspaper Het Financieele Dagblad reported that ING Bank could be fined “several hundred million” Euros , or dollars for transactions with countries under U.S. sanctions “like Cuba and Iran.”
ING acknowledged in March that it could face fines as a result of its ongoing “discussions” with U.S. officials. It did not explain the talks but said they were with the U.S. Department of Justice, federal prosecutors in New York and the Treasury Department’s Office of Foreign Assets Control, which enforces U.S. economic sanctions.
The paper says a source close to the Dutch central bank expects ING to be hit by fines of 'several hundreds of millions of euros'. The bank itself admits the fines could be 'considerable'.
The exact nature of the investigation remains unknown because the US has not responded to requests for more information, the FD says.
British banks Barclays and Lloyds were earlier fined $298m and $350m for helping Iranian and Libyan clients get round the trade embargoes. In 2005, ABN Amro was fined $80m and paid $500m to avoid prosecution for breaking sanctions against Iran and Libya, the FD points out.
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