ING Groep NV (ADR) (NYSE:ING) corruption investigations includes past irregular transactions between Uzbek official and telecoms company VimpelCom Ltd (ADR) (NASDAQ:VIP).
Corruption and irregularities in reporting procedures
Prosecutors reports that they were investigating transactions involving the subsidiary ING Bank NV. The institution has being suspected of not reporting or failing to report in a timely manner irregular transactions. It is reported for allowing international corruption as well as money laundering.
VimpelCom reported on February 2016 its intention to pay $795 million in aggregate in relation to solving Dutch and U.S. probe regarding a bribery scheme in Uzbekistan. This marked the second largest anti-corruption settlement globally in the records of history. The bank had set aside $900 million as full settlement of the anticipated payments.
Criminal related investigations
ING Bank claims that the Dutch prosecutors are targeting it in a criminal investigation with regards to money laundering and corruption which could lead to hefty fines. A spokesman of the company confirmed the investigation processes. The procedures were disclosed on page 232 of the institution’s annual report.
A word from the company
The spokesman could not however confirm the report published in a Dutch newspaper, Het Financieele Dagblad indicating that the investigations were linked to a case where the prosecutors claimed that bribes were paid to the former president of Uzbekistan’s daughter. This included a couple of telecommunication companies including Vimpelcom a telecoms company based in Amsterdam. The newspaper referred to a Dutch prosecution spokes woman.
Raymong Vermeulen, the ING spokesman, stated that the bank could not give any more information in regards to the investigations beyond what was given in the annual report statement.
Details of the statement
The statement had indicated the ING Bank is under scrutiny for criminal related investigations by the Dutch authorities regarding a number of requirements related to the on boarding of customers, corrupt practices as well as money laundering. The statement also indicated that it had received information form U.S. authorities and it was co-operating with the investigation procedures.
The bank said it was not in a position to predict the outcome of the investigations. However, it has agreed to an oversight from an independent monitor who will take care of compliance enhancements at the bank.
