ING Warns Facebook’s Ties With Banks May Be Breached Due To Libra Regulatory Concerns
Ralph Hamers, the CEO of ING, warned that Facebook's relationships with banks will probably be cut off due to its inability to address Libra regulatory issues, especially the money-laundering fears. Hamers made this known in an interview with the Financial Times on Oct. 22, stressing that banks, especially ING have functions to play as gatekeepers in the financial ecosystem. Thus, he noted that it would not be easy for banks to support enterprises that could expose the banking institutions to financial crimes.
Regarding ING's decision not to support Facebook's Libra project because of its unresolved regulatory issues, he said:
“We are such a large, regulated institution that you don’t want to risk anything. We’ve said we’ll take a look and see how this develops.”
The possibility of Libra's customers to engage in money laundering has made a lot of global regulatory queries since its launch. This has resulted in some of Libra's members leaving the association, hoping to come back when the project has resolved its regulatory controversies. It is in line with this that banks take precautionary measures and exit the client, or not accept the client.
The report also noted a Facebook's spokesperson statement regarding the Libra project, which implied that Facebook is trying to get everything right.
The spokesperson said, “From the beginning, we’ve said we’re committed to taking the time to get this right. As a member of the Libra Association, we will continue to be a part of this dialogue to ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves. Facebook will not offer Libra through its Calibra wallet until the Association has fully addressed regulators’ concerns and received appropriate approvals."
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