ABN Amro is allowed by the Amsterdam court to terminate the credit relationship with law firm VanEps. The bank finds the costs with this office registered in Curaçao too high.
ABN Amro is allowed by the Amsterdam court to terminate the credit relationship with law firm VanEps. The bank finds the costs with this office registered in Curaçao too high.
AMSTERDAM – Law firm VanEps, established under the law of Curaçao, has several offices on the Caribbean islands. About thirty lawyers work there, four of whom are registered with the Dutch Bar Association. VanEps has its office in Amsterdam through the Dutch Caribbean Desk at Van Doorne. VanEps has a partnership with Van Doorne. It is also registered with the Chamber of Commerce at Van Doorne’s address. Until April 1, 2022, VanEps was still called VanEps Kunneman Van Doorne.
AMSTERDAM
– Law firm VanEps, established under the law of Curaçao, has several offices on the Caribbean islands. About thirty lawyers work there, four of whom are registered with the Dutch Bar Association. VanEps has its office in Amsterdam through the Dutch Caribbean Desk at Van Doorne. VanEps has a partnership with Van Doorne. It is also registered with the Chamber of Commerce at Van Doorne’s address. Until April 1, 2022, VanEps was still called VanEps Kunneman Van Doorne.
Money laundering
Money laundering
VanEps had a business checking account with ABN Amro. The bank canceled this in 2021. The costs of services to foreign customers have risen significantly, according to the bank, which has to comply with increasingly strict laws and regulations. For example, customer and transaction investigations must be conducted to prevent money laundering and other forms of fraud. The bank finds testing against local laws and regulations expensive. That is why the services to VanEps were discontinued.
VanEps had a business checking account with ABN Amro. The bank canceled this in 2021. The costs of services to foreign customers have risen significantly, according to the bank, which has to comply with increasingly strict laws and regulations. For example, customer and transaction investigations must be conducted to prevent money laundering and other forms of fraud. The bank finds testing against local laws and regulations expensive. That is why the services to VanEps were discontinued.
‘Unacceptable’
‘Unacceptable’
In the first instance, VanEps is proved right by the preliminary relief judge. However, the judge in the Amsterdam District Court, thinks otherwise. There the law firm argues that termination is unacceptable according to standards of reasonableness. The office receives 1 million euros in the account every year. Without this checking account, its costs go up significantly, including exchange fees and the 1% license fee for outgoing foreign payments that Curaçao banks charge. No euro account can be opened at Curaçao banks and without a euro account VanEps runs an undesirable and unnecessary exchange rate risk. Furthermore, VanEps has (European) clients who want to pay in euros, payments via a foreign account lead to extra transaction costs. A Dutch bank account also inspires confidence among European clients. ABN Amro closes the account, then there is a risk of loss of turnover. On the other hand, there is the interest of the bank. In view of the high costs, ABN Amro has decided to almost completely dismantle the international business branch. Those costs no longer outweigh the benefits.
In the first instance, VanEps is proved right by the preliminary relief judge. However, the judge in the Amsterdam District Court, thinks otherwise. There the law firm argues that termination is unacceptable according to standards of reasonableness. The office receives 1 million euros in the account every year. Without this checking account, its costs go up significantly, including exchange fees and the 1% license fee for outgoing foreign payments that Curaçao banks charge. No euro account can be opened at Curaçao banks and without a euro account VanEps runs an undesirable and unnecessary exchange rate risk. Furthermore, VanEps has (European) clients who want to pay in euros, payments via a foreign account lead to extra transaction costs. A Dutch bank account also inspires confidence among European clients. ABN Amro closes the account, then there is a risk of loss of turnover. On the other hand, there is the interest of the bank. In view of the high costs, ABN Amro has decided to almost completely dismantle the international business branch. Those costs no longer outweigh the benefits.
Banking system
Banking system
The court also recognizes that customers such as VanEps are insufficiently profitable or loss-making for the bank. However, VanEps is not dependent on the payment account at ABN Amro for its business operations, the court states, now that most payment transactions are settled by VanEps through other banks. Payment traffic at ABN Amro is limited. VanEps is also not excluded from the banking system upon termination of the bank account – the office also has other accounts. VanEps has not demonstrated that it is impossible to open a current account with another Dutch bank. According to the court, the interest of ABN Amro in terminating the relationship weighs at least as much weight as the interest of VanEps in its continuation. Therefore, the bank may terminate the credit relationship.
The court also recognizes that customers such as VanEps are insufficiently profitable or loss-making for the bank. However, VanEps is not dependent on the payment account at ABN Amro for its business operations, the court states, now that most payment transactions are settled by VanEps through other banks. Payment traffic at ABN Amro is limited. VanEps is also not excluded from the banking system upon termination of the bank account – the office also has other accounts. VanEps has not demonstrated that it is impossible to open a current account with another Dutch bank. According to the court, the interest of ABN Amro in terminating the relationship weighs at least as much weight as the interest of VanEps in its continuation. Therefore, the bank may terminate the credit relationship.
Source: Mr.online
Source: Mr.online
https://www.curacaochronicle.com/post/main/dutch-bank-terminates-credit-relationship-with-caribbean-law-firm-vaneps-too-expensive/
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