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08 June 2017 - ABN Amro sacks 10 managers over mortgage fraud
ABN Amro
Source - http://nltimes.nl/2017/06/08/abn-amro-sacks-10-managers-mortgage-fraud-100-staffers-reprimanded
Where - Netherlands
Business line - Retail Banking

ABN Amro has found 114 employees guilty of forging signatures on mortgage advice reports after a major internal investigation.

The fraud took place between 2013 and 2016. According to the bank, during this time, 47,826 mortgage advice reports were given to clients and of these 9,900 reports were revised. In around 700 of these cases, a copied signature was found in the file.

“In only three individual cases, the client suffered a (very low) financial loss,” said Frans van der Horst, CEO of ABN AMRO retail banking. “This involved less than €1,000 in total, which has since been compensated.”

The majority of the individuals implicated were reprimanded and a number were dismissed from the bank, including at least 10 managers, according to reports.

The bank’s internal investigation identified three main causes for the misconduct. Firstly, the complexity of compiling a mortgage advice report, paired with poor IT support; secondly, the way employees were managed, with some advisers not having a direct manager, or several managers over a short period of time. Tough targets were also mentioned as a possible contributor in this context. And thirdly, the culture within the department.

“We have established that the signals sent out by mortgage advisers didn’t always reach the management,” said Wies Wagenaar, head of conduct. “That was because several parties were involved and there was not one specific person responsible for the entire mortgage advice process. There was also too much distance between the employees who designed new mortgage policies and the developers of the IT support systems on the one hand, and the advisers who have to work with these policies and systems on the other,” she added.