The Netherlands-based multinational bank ING has been fined €775m ($898m).

The bank accepted its failure in the implementation of customer due diligence policies to prevent money laundering.

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The bank has signed a settlement agreement with the Dutch Public Prosecution Service (DPPS) following which, it will pay €675m as fine and additional €100m for disgorgement.

DPPS conducted an investigation on the activities of the bank within the period of 2010-2016. It found significant flaws in the execution of policies to prevent financial crime at ING Netherlands.

In the investigation, DPPS found that several customer due diligence (CDD) files were incomplete, incorrect risk classifications, inadequate post-transaction monitoring system, as well as unavailability of a periodic CDD review process.

The investigation also found the bank to have categorised its clients in wrong segments. Moreover, it did not terminate business relationships in a timely manner.

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These shortcomings enabled the clients to utilise their ING Netherlands bank accounts for money laundering.

ING CEO Ralph Hamers said: “As a bank we have the obligation to ensure that our operations meet the highest standards, especially where it comes to preventing criminals from misusing the financial system.

“Not meeting those standards is unacceptable and ING takes full responsibility.”

The investigation did not find any evidence of any active involvement of the ING employees with this money laundering activities.

The fine is attributed as a collective failure of all responsible management levels, the statement added.

ING has initiated various measures against multiple former employees who held larger responsibility in upholding money laundering prevention policies.