Response to FD publication on ABN AMRO’s mortgage policy for non-residents

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Late 2016, ABN AMRO announced changes to its policy for non-residents of the Netherlands. Early this year, the bank proceeded to implement these changes, by applying the non-resident policy to new mortgage applications. As a consequence, fewer new mortgages will be granted to clients living outside the European Economic Area (EEA). Dutch financial daily FD published an article on this subject today.

Compliance with legal and regulatory requirements

ABN AMRO has decided to apply this non-resident policy because the risks and costs of serving clients outside the EEA are rising. As local and international laws and regulations grow in number and complexity, the bank runs a steadily bigger risk of failing to comply with all of them. This goes against the bank’s strategy to maintain a moderate risk profile. The risks that the bank is keen to avoid are not those related to individual clients but the overall risk of non-compliance with legal and regulatory requirements at both local and international level.

Non-resident mortgage policy

The non-resident policy does not apply to already existing mortgages of clients residing outside the EEA, and will not lead to the termination of any such mortgages. New mortgage applications (including applications to increase one’s loan amount) will be assessed on a case-by-case basis. In these assessments, the applicant’s country of residence will be an important criterion. An exception to the non-resident policy may be made if the applicant residing outside the EEA has plans to take up residence and employment in the Netherlands again within six months after the mortgage application is made. The non-resident policy does apply in such cases, but for applications from certain countries, temporary risk acceptance can be granted so that a new mortgage can after all be arranged.

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