By Steve Goldstein, MarketWatch
ABN Amro shares plunged 12% as the bank disclosed the Dutch public prosecutor is investigating it over money laundering prevention and the financing of terrorism.
ABN Amro /zigman2/quotes/209088556/delayed NL:ABN +1.81% didn’t provide detail about the investigation. ABN Amro said it’ll cooperate fully with the investigation.
Last year, however, rival Dutch bank ING /zigman2/quotes/203351007/delayed NL:INGA +1.99% was fined 775 million euros by the Dutch public prosecutor over similar charges.
Analysts at UBS said ABN has previously flagged shortcomings in anti-money laundering and know-your-customer. ABN Amro had booked 199 million euros over the last three quarters to build up know-your-customer capabilities.
“While the outcome and timing of the current investigation remains uncertain, we believe that the risk of financial penalties has increased,” UBS said.