Can a bank refuse credit based on money laundering regulations to someone who has been a customer for years, but who mainly relies on cash for turnover? That question is the focus of summary proceedings that a scrap dealer has filed against Rabobank.
The metal trader wanted to take over a marina in Maastricht for 2.5 million euros and submitted a loan application to Rabobank – which was initially approved, the FD writes. But after a money laundering investigation, the bank withdrew the approval, exactly one day before the transfer in January. Because the name of the trader was also included in that investigation and that was a ‘red flag’ for the bank that had had the man on its books for twenty years without any problems.
22 million paid in cash
The trader now wants to use summary proceedings to enforce that the credit is provided. Last week it became unclear to the judge why Rabobank had withdrawn. A bank employee cannot come much more concrete than ‘there were signals’. The trader bought 32 million euros worth of scrap last year, of which 22 million was paid in cash. The bank believes that the company must first limit cash flows to a minimum before reaching an agreement for the financing of the marina.
According to the man, the company is trying to switch to cashless payments, but many customers do not like that. He seems to be able to count on the judge’s understanding: ‘You had known this company for years. What was new about that cash flow?’ he asked the bank in vain. The verdict will be announced in two weeks.
Read the entire article at the FD
2024-03-05 01:06:31
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