Central Bank imposes €15 million fine on ABN Amro for illegal bonuses

The Dutch Central Bank (DNB) has imposed an administrative fine on ABN Amro for violating the bonus ban between 2016 and 2024. The fine amounts to 15 million euros.

This bonus ban was introduced after the global financial crisis. The aim is to prevent state aid or the income generated from it from flowing to employees. The ban had already applied to ABN Amro's board of directors since 2012 and was extended to the second tier of management in 2015.

The German Bank for National Banks (DNB) found that ABN Amro had violated the bonus ban for seven second-level management positions. Bonuses totaling €1.5 million were paid to these executives between 2016 and 2024. In addition, one executive allegedly received two salary increases that were also prohibited.

According to the supervisory authority, ABN Amro had previously alerted it to its illegal bonus policy. The bank reportedly temporarily suspended the practice, but then resumed it and even awarded new bonuses.

ABN Amro accepts the penalty

ABN Amro has accepted the €15 million fine. The bank interpreted and applied the legislation in good faith, it said in a statement. This assessment was incorrect, and the bank regrets this, as well as the potential social consequences.

ABN Amro became state-owned during the 2008 financial crisis to secure the bank. Since 2015, the Dutch government has gradually reduced its stake; currently, around 30 percent of the shares are in state hands.