August 7, 2020

ING reduces its profits by half after the tax penalty for money laundering | Economy



"The company recorded a special item of 775 million euros in the third quarter after the conciliation agreement with the Dutch authorities on regulatory issues announced on September 4, "explains the entity in the presentation of results." According to the terms of the agreement, ING agreed to pay a fine of 675 million euros and 100 million euros in return for profits illicit, "says the Dutch bank that advances will not claim any tax deductions related to these payments.

The origin of this heavy sanction goes back to September 4, when the ING group announced an agreement with the Netherlands Prosecutor's Office to settle the investigations related to the deficiencies in the prevention of money laundering and corrupt practices in its Dutch subsidiary, ING Netherlands, between 2010 and 2016 in exchange for a payment of 775 million euros.

"One year ago, an extraordinary entry was registered to post a tax charge in ING Australia Holdings Ltd. related to the years 2007-2013, for which a full refund of the NN Group will be received." The final impact for ING was zero, but it affected both taxation and the other income lines in the consolidated statement of profit and loss ", clarifies the entity.

Apart from these extraordinary chapters, ING Group's total revenues amounted to 4,682 million euros between July and September, 3.4% more. Of these, net interest income increased by 0.3% to 3,500 million, while fee income grew by 12% to 720 million euros and investment income rose by 8.5% to 89 million euros.

During the first nine months of the year, ING Group obtained a net profit of 3,431 million euros, representing a decrease of 11.8% over the same period of 2017, while its revenues increased by 1.8%, to 13,640 million of euros.

"This third quarter has been strongly marked by the agreement reached with the Netherlands Prosecutor's Office, as a bank, we have the responsibility to ensure that our operations comply with the highest standards, especially when it comes to ensuring their integrity and that of the financial system ", pointed the CEO of ING Group, Ralph Hamers.

The banker added that not complying with these rules "is unacceptable", while stressing that the bank "takes the accusations very seriously and accepts" responsibility "for the crime, which he considers" regrettable. "In fact, Hamers has admitted that the fine has had a "substantial" impact on its reputation and results.

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