De Nederlandsche Bank (DNB) has imposed two administrative fines totalling €20 million on state-owned lender de Volksbank for serious failings in risk management and anti-money laundering controls.

The Dutch central bank levied a €15 million penalty on de Volksbank for failing to ensure sound business operations between 2018 and 2023, in violation of the Financial Supervision Act. A separate €5 million fine was imposed for inadequate monitoring of customers for potential money laundering activities.

The bank, which operates several smaller Dutch lending brands including SNS and ASN that were nationalised during the 2008-2009 financial crisis, has acknowledged the shortcomings identified by regulators.

The enforcement action comes as de Volksbank undergoes significant restructuring, with plans announced last year to consolidate its operations under the ASN brand while reducing its workforce by approximately 750 positions and closing nearly 300 local branches.

The fines follow similar regulatory actions against larger Dutch banks in recent years. ING paid €775 million in 2018 and ABN Amro settled for €480 million in 2021 over deficiencies in their anti-money laundering systems.

While the Dutch government has expressed intentions to return de Volksbank to private ownership, no concrete privatisation plans have yet been presented.

The bank said it had already begun implementing measures in 2024 to structurally improve its risk management framework in response to the identified failings.

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