ABN Amro in Dutch central bank crosshairs over pay restrictions

[AMSTERDAM] ABN Amro Bank said it could be at the risk of financial penalties as a result of a difference of opinion with the Dutch central bank over alleged violations of its pay restrictions.

The firm and De Nederlandsche Bank “appear to have different views on a particular application of the bonus ban”, a spokesperson for ABN Amro said. The lender “carefully applies the laws and regulations regarding remuneration”, he wrote.

The spokesperson responded to a request for comment, after ABN Amro said in its annual report that it’s holding formal discussions with the regulator regarding alleged violations of remuneration restrictions for a number of employees. The bank first disclosed those talks in its third-quarter report.

The Netherlands imposed sweeping pay restrictions on bank executives after having to bail out large swathes of the industry in the financial crisis, including ABN Amro, in which is still owns a large stake. Lenders have complained that the restrictions are a stumbling block in their ability to attract talent.

ABN Amro said in the annual report, published this week, that there was no clarity yet as to whether the central bank will take enforcement measures, and that the amounts involved could not be reliably estimated. BLOOMBERG