ABN AMRO’s response to Fair Bank Guide's practical study on tax avoidance

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The Dutch Fair Bank Guide (Eerlijke Bankwijzer) today published a study on the relationship between Dutch banks and a number of large companies that have been reported in the media as engaging in tax avoidance. ABN AMRO has the lowest score among Dutch banks in the study. We realise this may give rise to questions and so would like to share our side of the story. We do not recognise ourselves in all the information and conclusions presented in the study.

A responsible tax policy

At ABN AMRO, we attach great value to a responsible tax policy, both for ourselves and for our clients. We reject artificial structures designed solely to minimise tax. We take our social responsibility seriously and want to set a good example in this regard. For instance, we were one of the initiators of the Dutch Tax Governance Code within the framework of the VNO-NCW employers’ federation, and we encourage our clients to follow our lead. It is important to emphasise, however, that we cannot impose the same tax requirements on our clients as we do on ourselves.

Companies wrongly named as clients

In its report, the Fair Bank Guide wrongly names several companies as being clients of ABN AMRO that have, for example, taken out loans or are account holders with our bank. We cannot comment on specific companies. But in 2020, ABN AMRO announced a significant strategic shift, after which we discontinued relationships with companies that do not align with this new strategy, including our global Trade & Commodities Finance activities. Some of the companies mentioned are active in this sector.

Indirect relationship through client investments

Additionally, we wish to make it clear that some companies are mentioned in the report because our clients invest in them. ABN AMRO itself does not hold shares or bonds. We offer transparent investment products that fully comply with the applicable tax rules and regulations. Despite the Fair Bank Guide's call to avoid certain companies, we prefer to leave that choice to our clients.

ESG engagement only possible through investments

Offering shares and bonds in companies enables us to maintain a dialogue with these companies and guide them towards meeting ESG goals. Engagement is an important element of our ESG investment strategy.

Fair Bank Guide’s method

Like most banks, ABN AMRO did not cooperate with the study in light of the well-known objections to the Fair Bank Guide's research methodology. For instance, the study presents a distorted picture because ABN AMRO has its own asset managers while other banks use external parties, and these external asset managers are not included in the study.

Societal signal

Despite our objections to the Fair Bank Guide’s report, we support the main message that paying taxes is a social responsibility. We reject artificial tax structures aimed at tax minimisation and we view the report as an opportunity to continue the conversation with our clients on this important topic. We remain committed to transparency and responsible tax policy, both for ourselves and for our clients.