Netherlands-based financial services company settles Netherlands corrupt practices case and receives SEC declination

Financial Crimes SEC FCPA

On September 4, a Netherlands-based financial services company announced in its Form 6-K filing that it had agreed to pay a penalty of $782 million and disgorgement of $115 million to resolve corruption charges by the Dutch Public Prosecution Service (“DPPS”). The DPPS charges related to the company’s prevention of money laundering, client on-boarding, and corrupt practices. The company acknowledged its “serious shortcomings in the execution of customer due diligence policies to prevent financial economic crime” and “regrets that these shortcomings enabled customers to misuse accounts.”

On September 5, following the settlement with the DPPS, the company announced in a new Form 6-K filing that it received a formal notification from the SEC that it had concluded its own FCPA investigation and did not intend to recommend an enforcement action. The company first disclosed the SEC investigation in March 2017. The response from the SEC is consistent with the new policy against so-called piling on issued by DOJ in May 2018. The policy is intended to encourage coordination among enforcement authorities to avoid duplicative penalties. See previous FCPA Scorecard coverage here.