The Netherlands: Russian money laundering machine shifted millions through the Netherlands

On March the 5th. DutchNews reported that a money laundering operation which moved billions of euros out of Russia shifted part of the cash through the Netherlands, the Organized Crime and Corruption Reporting Project said on Monday.

In total, almost €1bn of the money ended up in the Netherlands, some of which was used to buy two luxury yachts, said the research project, which includes Trouw and the Groene Amsterdammer magazine plus Dutch investigative journalism collective Investico.

The OCCRP says Troika Dialog, once Russia’s largest private investment bank, channeled billions of dollars out of Russia from 2004 via a network of 70 offshore companies with accounts in Lithuania. The two Lithuanian banks were closed down in 2011 and 2013.

The scheme was discovered in a collection of 1.3 million banking transactions and other documents obtained by OCCRP and the Lithuanian news site 15min.lt, which stem from the two Lithuanian banks.

Some of the money was channeled into the Netherlands via the Amsterdam Trade Bank (ATB) and Turkey’s C. ATB, part of Russia’s Alfa Bank, is already involved in corruption investigations.

Smaller amounts were moved through ING and ABN Amro, the Groene Amsterdammer said. ‘The million euro payments came from the Troika Bank and had many signs of money laundering,’ the magazine said.

In addition, €43m went to the Rabobank account of luxury yacht builder Heesen, according to Dutch investigative news collective Investico.

 ‘How could all this happen under the watchful eye of the central bank DNB?’ the magazine asked. ‘Banks are banned from carrying out transactions if they don’t know who profits, but, the central bank says, banks often have no idea who is really hiding behind anonymous companies.’

 The central bank declined to answer specific questions about the claims, the Groene Amsterdammer said.

EU-Digest

Smaller amounts were moved through ING and ABN Amro, the Groene Amsterdammer said. ‘The million euro payments came from the Troika Bank and had many signs of money laundering,’ the magazine said. In addition, €43m went to the Rabobank account of luxury yacht builder Heesen, according to Dutch investigative news collective Investico. ‘How could all this happen under the watchful eye of the central bank DNB?’ the magazine asked. ‘Banks are banned from carrying out transactions if they don’t know who profits, but, the central bank says, banks often have no idea who is really hiding behind anonymous companies.’ The central bank declined to answer specific questions about the claims, the Groene Amsterdammer said.

Read more at DutchNews.

European Banking Industry: the Netherlands-Depositing cash into your account is not free at major Dutch banks

Paying cash into an ING bank account is to cost €5 a time - after six free deposits - the AD reports on Wednesday.
The bank, which has nine million current account holders, says it is introducing the charges because processing cash is expensive. Children and students will not have to pay a fee.
The Telegraaf says Rabobank has already introduced charges for cash deposits.
- See more at: http://www.dutchnews.nl/news/archives/2011/12/depositing_cash_money_no_longe.php#sthash.GGpzLPzc.dpuf

Paying cash into an ING bank account is to cost €5 a time - after six free deposits - the AD reports on Wednesday.
The bank, which has nine million current account holders, says it is introducing the charges because processing cash is expensive. Children and students will not have to pay a fee.
The Telegraaf says Rabobank has already introduced charges for cash deposits.
- See more at: http://www.dutchnews.nl/news/archives/2011/12/depositing_cash_money_no_longe.php#sthash.GGpzLPzc.dpuf

Paying cash into an ING bank account is to cost €5 a time - after six free deposits - the AD reports on Wednesday.
The bank, which has nine million current account holders, says it is introducing the charges because processing cash is expensive. Children and students will not have to pay a fee.
The Telegraaf says Rabobank has already introduced charges for cash deposits.
- See more at: http://www.dutchnews.nl/news/archives/2011/12/depositing_cash_money_no_longe.php#sthash.GGpzLPzc.dpuf

Depositing cash into their own  bank accounts is costing Dutch Citizens approximately €5 ($6.82) at a time - after they have done six free deposits -

Dutch banks says it had to introduce these charges and fees because "processing cash is expensive". Children and students, they say will not have to pay a fee.

As unbelievable as this may sound it is true and worse is that the Dutch center right coalition Government of Rutte and Samson has not taken any action against this disguised form of "robbery",

Cash still has a "dominant role" when it comes to small-value transactions. It also remains essential form of payment for lower-income consumers who may not have access to alternative payment options, and it is widely used for retail sector payments.

"Small folks" have made businesses, including banks, who they are, and many companies can collapse as a result of the same "little people" united strength. It's really sad that in 2014 - people still constantly need to fight for what is theirs instead of sharing what we have, so we all can gain.

EU-Digest

ING Groep Selling Majority of Korean Life Insurance Unit for 24 Billion

In an effort to continue an exit from its Asian insurance businesses, Netherlands-based ING Groep (NYSE: ING  ) has reached an agreement to sell ING Life Korea to MBK Partners for $1.66 billion, ING announced recently.

In a statement, Jan Hommen, CEO of ING, called the deal "a major step in the divestment of our Asian insurance and investment management activities." Hommen added that "together with the scheduled payment of the next tranche of the core Tier 1 securities to the Dutch State in November 2013, this will bring us further into the end phase of the restructuring of our company."

ING will pay approximately $107 million to retain an indirect stake of 10% in ING Life Korea. ING Life Korea currently serves approximately 1.3 million customers, and has an estimated 6,800 "tied agents" along with 1,000 employees.

ING said it expects to realize an after-tax loss from the sale of an estimated $1.27 billion, which it will book in Q3 of this year. Proceeds from the transaction will be used to pay down debt, according to ING.

The deal is expected to close in Q4 of 2013, and is subject to regulatory and closing conditions.
ING Groep is still struggling to pay back bailout money it received from the Dutch state in 2008. Under direction of the European Union's competition authority, ING must separate its insurance and banking activities. After listing its U.S. insurance arm this year, it plans to spin off its European insurance arm in 2014.


Read more: ING Groep Selling Majority of Korean Life Insurance Unit for 1.24 Billion (ING)

Netherlands: Banking Industry: ING U.S. To Rebrand Itself As "Voya Financial"

As more Americans face the growing responsibility to plan and save for their retirement, ING U.S.'s goal is help guide them on their voyage toward greater financial preparedness. In this context, and as it continues to prepare to become an independent company, ING U.S. has announced plans to rebrand in the future as Voya Financial. ING U.S. believes the new brand identity will support its mission to make a secure financial future possible — one person, one family and one institution at a time.

"While our future name and logo will be different, the commitment we have to our customers and our retirement, investment management and insurance businesses remains the same," said Rodney O. Martin Jr., CEO of ING U.S. "Our vision is to help working Americans prepare for the important financial journey they face. We want to be known as the company that understands and supports their diverse needs as they seek to advance their retirement readiness — in essence, to be America's Retirement Company. We intend for the Voya Financial brand to become synonymous with this goal as we provide the distinctive value, guidance, products and services our clients and partners have come to expect from ING U.S."

The Amsterdam-based parent, ING Group, has previously announced its base case plan to divest ING U.S. through an initial public offering (IPO). ING U.S. will start operational rebranding following the proposed IPO. The operational rebranding process is expected to take approximately 24 months once it is started, and ING U.S. would not use its new name and logo commercially until the operational rebranding process has been completed. The Voya Financial identity would, however, be reflected in the company's new ticker symbol (NYSE: VOYA) upon completion of the IPO. 

EU-Digest

Dutch ING gearing up to sell Canadian and British bank units

Canadian CBC news reported that the Dutch ING Groep NV says it is reviewing its internet banking arms in Britain and Canada as prelude to a possible sale.

"ING …is currently reviewing strategic options for ING Direct Canada and ING Direct UK," ING Groep NV said in a press release. "These reviews may or may not lead to transactions, and no decisions have yet been made in this regard."

ING Direct is Canada's largest internet bank. Founded in 1997, it now has 1.8 million customers. The bank has roughly $30 billion worth of loans on its books, primarily residential mortgages. And has $30 billion worth of deposits from individual investors.

Predominantly known for its groundbreaking high-interest savings account, the company has also branched into TFSAs, RRSPs, GICs, low-cost mutual funds and in August of 2010, launched a no-fee chequing account.

A report by Credit Suisse banking analyst Gabriel Dechaine said Friday the Canadian unit could fetch as much as $1.7 billion to $2.6 billion in a sale. He suggested Scotiabank and National Bank would be "natural buyers" for ING's Canadian business because both banks are relatively weak on the deposit business.

ING is struggling to keep its balance sheet healthy amid bad loans and declining margins, as well as an obligation to repay three billion euros worth of bailout funds it received from the Dutch government during the 2008 financial crisis. In February, ING sold ING Direct in the U.S. to Capital One for $600 million while the British ING unitwhich could also be up for sale  has 1.5 million customers.

EU-Digest 

The Netherlands: ING settles US criminal conduct sanctions evasion case

ING Bank agreed to pay $619 million (euro 500 m) to settle charges that it secretly moved billions of dollars through the U.S. financial system on behalf of Cuban and Iranian customers, in violation of U.S. sanctions.

The US Treasury Department also said ING intentionally deleted information about thousands of transactions that would have linked the money to sanctioned parties.

ING agreed not to contest the charges and accepted responsibility for their criminal conduct, the Justice Department said. ING stated it  had strengthened its global risk controls since the problems were discovered.

EU-Digest

ING CEO says company losing staff to competitors over pay restrictions - by Maarten van Tartwijk

Dutch financial services group ING Group NV's (ING) Chief Executive Officer Jan Hommen said Monday the company is losing staff to competitors because of pay restrictions imposed on banks that received state aid at the height of the financial crisis.

He said some staff are being tempted away by banks that didn't get state aid and that are therefore able to offer more lucrative pay deals.

"A number of financial companies that haven't received state aid are taking a lot of freedom in payments and are doing so very energetically," Hommen said. "From time to time we lose people." Hommen said ING is also vulnerable to staff losses because of plans to split its banking and insurance businesses. ING agreed to a drastic restructuring plan late last year in return for receiving state funds, that involves the disposal of a large portion of its assets, including its insurance business.

For more: ING CEO Says Losing Staff To Competitors Over Pay - WSJ.com

EU-Digest: SmartMoney: Netherlands: ING Bites the Bullet - Its time for US banks to do the same

For the complete report from SmartMoney.com click on this link

Netherlands: ING Bites the Bullet

One of the great debates among U.S. bank regulators is whether large, ailing firms should be broken up to pose less risk to the financial system. But in Europe, the debate already seems settled: just do it. At least that’s the message traders heard from ING.

The European Commission has cracked down harder on antitrust issues than regulators in the U.S., says Jaap Meijer, a bank analyst with Evolution Securities in London. “It’s all very drastic,” he says. But ING is “solving its weak capital base” by taking these steps. And other banks should ultimately emerge in a healthier state after they also raise capital and divest assets. Still, some bank analysts said ING’s settlement with regulators looks less favorable than they’d expected. And the news hit European bank stocks hard today, with ING falling over 7% in Amsterdam trading.

Note EU-Digest: Isn't it time for US Banks to do the same??

Business Times: Modest profit for ING in second quarter seen after Dutch Government bailout

For the complete report from the Business Times click on this link

Modest profit for ING in second quarter seen after Dutch Government

ING Groep NV is expected to post its first profit in a year when it reports second-quarter results tomorrow but analysts will be looking ahead to the schedule for the Dutch bancassurer's crucial asset sale programm. Analysts polled by Reuters on average expect a profit of euro 275 million after nearly euro 5 billion in losses the previous three quarters. Loan losses are expected to have declined only very slightly to ?euro 776 million. SNS Securities, in a recent note, said ING's markets look to have generally performed well in the second quarter, though not enough to have returned its insurance business to profitability.

Bloomberg.com: EU Has ‘Doubts’ About ING’s Risk Transfer Plan - by Matthew Newman and Martijn van der Starre

For the complete report from Bloomberg.com click on this link

EU Has ‘Doubts’ About ING’s Risk Transfer Plan - by Matthew Newman and Martijn van der Starre

ING Groep NV, the biggest financial services company in the Netherlands, must overcome “doubts” from European Union regulators that its risk-transfer plan with the Dutch government on mortgage assets complies with EU rules. The European Commission said the Dutch government, which accepted a transfer of risks and cash flows on 21.6 billion euros ($30.1 billion) of mortgage assets from ING, may have overvalued the portfolio. “The commission considers at this stage that it can not dispel its doubts that the approach taken by the independent expert appears to lead to an overvaluation of the portfolio and to an overestimation of the benefit to the Dutch State,” the EU said July 11 on its Web site. The commission gave temporary approval for the Dutch measure on March 31.

The commission said it has doubts about the discount rates used to calculate the cash flows to ING, the house price assumptions that underlie the portfolio’s U.S. mortgages and other valuation methodologies used to assess the real economic value of the illiquid assets that are part of the transaction. ING, which traces its roots to 1743, plans to raise as much as 8 billion euros selling assets, it said in April. The company, which also received a 10 billion-euro lifeline from the Netherlands in October, will sell as many as 15 businesses and exit about 10 of the 48 countries in which it operates.

Investment News: ING plans massive sell-off to adjust risk for its insurance unit - by Darla Mercado

For the complete report from Investment News click on this link

ING plans massive sell-off to adjust risk for its insurance unit - by Darla Mercado

The Amsterdam, Netherlands-based financial services giant ING ( recently bailed out by the Dutch Government) said that it would sell assets and adjust its risk profile for its insurance unit. ING said that it would operate its bank and insurer separately under one group umbrella. ING also said that it would reduce its U.S. financial products division as its assets mature, and that while it will retain its positions in Central Europe, Latin America and Asia/Pacific, it will review its life insurance activities in China and Japan. The company’s investment management operations in the Americas, Asia/Pacific and Europe will also be combined into a global investment management organization. That organization will include real estate investment management.

On the banking side, ING said that it would concentrate on European banking and would strengthen business in Poland, Romania, and Turkey through its retail banking unit in Central Europe.

Telegraph.co.uk: Dutch International Banking Giant ING axes 7,000 jobs as boss steps down - by Katherine Griffiths

For the complete report from the Telegraph click on this link

Dutch International Banking Giant ING axes 7,000 jobs as boss steps down - by Katherine Griffiths

ING, the Dutch banking giant, announced the departure of its chief executive and 7,000 job losses as it posted a loss of €1bn for 2008. ING's revelations came as BNP Paribas, France's biggest bank, unveiled worse-than-expected results for the fourth quarter of 2008. Michel Tilmant, ING's chief executive, stepped down with immediate effect because of the stress of his job in recent months, a spokesman said. "It has taken its toll on him . . . Basically, he's tired and has decided it would be in ING's best interests for a chief executive with more energy to take over," the spokesman said. Mr Tilmant will be replaced by board chairman Jan Hommen, 65, former chief financial officer of Dutch electronics group Philips, which separately also announced yesterday that it was cutting 6,000 jobs .

ING has turned to the Dutch government for the second time in three months for assistance. The new state loan guarantees are targeted at tackling investor uncertainty about ING's €27.7bn portfolio of "Alt-A" mortgage-backed securities, a class of asset that sits between prime and sub-prime. ING said it would cut €1bn of costs in 2009, by scrapping 7,000 jobs out of a total of about 130,000 worldwide. It also said it would re-evaluate its sponsorship of the Renault Formula One racing team.

Bloomberg.com:The Netherlands - ING Posts First Loss, May Have Additional Writedowns

For the complete report from Bloomberg.com click on this link

ING Posts First Loss, May Have Additional Writedowns - by Martijn van der Starre

ING Groep NV, the financial-services firm that got a 10 billion-euro ($12.6 billion) lifeline from the Netherlands last month, said writedowns amounted to 1.51 billion euros in the third quarter and may extend through year end. The loss for the quarter ended Sept. 30, the first since the company was created in 1991, was 478 million euros, or 22 cents a share, it said today in a statement. That was less than the 500 million-euro loss it forecast last month and compared with net income of 2.31 billion euros, or 1.08 euros, in the year-earlier period. ING rose as much as 3.8 percent in Amsterdam trading.