ING Remains The Home Banker Of The Tax Authorities
ING Remains the home Banker of the Tax Authorities. ING has retained a large customer. The bank may continue to handle payments from the Tax Authorities until at least 2024. It involves around 262 million transactions per year. ING’s position was under discussion after a money laundering affair.
According to Minister Wopke Hoekstra (Finance), several major change processes are already underway at the Tax Authorities. Another change would be too much of a good thing.
Another ING contract with the government runs until 2020. Hoekstra decided this spring that this contract would not be automatically extended. There will be a tender, to which ING can also subscribe.
The money laundering affair was arranged, this cost ING 775 million euros. The bank’s contract could not be torn apart after the money laundering affair. That was only possible if the bank could no longer meet its obligations or was no longer creditworthy, Hoekstra explained. He wants stricter conditions in the new tendering procedure to choose a house banker.
As a result, a judge’s judgment could become a reason for the government to cancel a contract with a bank. Hoekstra also wants to see if deals can be cancelled if a bank is involved in corruption or fraud.
As the principal banker for central government, ING handles around 40 million transactions annually.
Consider, for example, the collection of traffic fines and the payment of student loans. With 262 million incoming and outgoing payments per year, the contract with the tax authorities in many times larger.