The Hague (Netherlands), Dec 9 (AP) A Dutch court on Wednesday ordered prosecutors to open a criminal investigation into the former CEO of ING bank, Ralph Hamers, for his role in a money laundering scandal that led to a huge settlement in 2018.

ING paid 775 million euros to settle the case, with the country's financial prosecution service saying that the bank failed for years to adequately implement a law aimed at preventing money laundering and the financing of terrorism by not carrying out adequate background checks on clients and not sufficiently investigating suspicious transactions.

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Hamers has since left ING and is CEO of Zurich-based bank UBS. He conceded at the time of the 2018 settlement that the bank had failed to do enough to prevent money laundering.

The Hague Appeals Court upheld the settlement in a ruling Wednesday and called on prosecutors to open a case against Hamers.

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“The facts are serious, no settlement has been reached with the director himself, nor has he taken public responsibility for his actions,” the court said in a statement.

“The court considers it important that in a public criminal case the standard is confirmed that bank directors do not go unpunished if they have exercised effective leadership over serious prohibited behavior.”

Hamers could not be reached for comment through UBS. The Swiss bank said in a statement that it had taken note of the Dutch court's decision and expressed “full confidence” in Ralph Hamers' ability to lead UBS.

ING said it regrets the decision to prosecute Hamers, saying it “goes against the assessment of the public prosecutors that, based on the investigation, there are no grounds for a case against ING employees or former employees.”

The leader of a foundation that took the case to the appeals court welcomed the decision to investigate Hamers.

“It should not be the case that directors who deliberately act wrongly can ransom themselves at the expense of the shareholders by agreeing to very high fines for only the company and shareholders who are completely innocent," said Pieter Lakeman of the Company Information Research Foundation. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)