ING Direct 2015 Annual Report Download - page 134

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
Furthermore, ING Banks leases assets from third parties under operating leases as lessee. The future rental commitments to be paid
under non-cancellable operating leases are as follows:
2015
2014
2015
281
2016
310
169
2017
160
117
2018
143
94
2019
122
80
Years after 2019
513
304
1 Excludes future rental commitments related to businesses classified as held for sale. (2014: ING Vysya).
44 Legal proceedings
ING Bank companies are involved in litigation and arbitration proceedings in the Netherlands and in a number of foreign jurisdictions,
including the U.S., involving claims by and against them which arise in the ordinary course of their businesses, including in connection
with their activities as lenders, broker-dealers, underwriters, issuers of securities and investors and their position as employers and
taxpayers. In certain of such proceedings, very large or indeterminate amounts are sought, including punitive and other damages.
While it is not feasible to predict or determine the ultimate outcome of all pending or threatened legal and regulatory proceedings,
the Company’s management is of the opinion that some of the proceedings set out below may have or have in the recent past had a
significant effect on the financial position, profitability or reputation of the Company.
Because of the geographic spread of its business, ING Bank may be subject to tax audits in numerous jurisdictions at any point in time.
Although ING believes that it has adequately provided for all its tax positions, the ultimate resolution of these audits may result in
liabilities which are different from the amounts recognised.
Purported class litigation was filed in the United States District Court for the Southern District of New York alleging violations of the
federal securities laws with respect to disclosures made in connection with the 2007 and 2008 offerings of ING’s Perpetual Hybrid
Capital Securities. The District Court has dismissed all claims related to the 2007 and 2008 offerings. The plaintiffs appealed that
decision relating to the 2008 offering. The appellate court affirmed the District Court’s decision dismissing all claims. The plaintiffs then
filed an appeal with the U.S. Supreme Court. The U.S. Supreme Court in March 2015 vacated the judgement of the Second Circuit; the
case was remanded back to the District Court. In August 2015, the District Court dismissed all remaining claims. No appeal has been
filed, therefore the District Court decision has become final.
A complaint has been filed against ING Bank in January 2015 in the New York District Court by Alfredo and Gustavo Villoldo and the
executor of their father’s estate (‘Villoldo’). Villoldo holds two judgements against the Cuban government and other Cuban entities in
the aggregate amount of USD 2.9 billion. Those judgements remain outstanding and uncollected. The complaint against ING Bank
alleges that if ING Bank had complied with the applicable US sanction laws, Cuba assets would have been frozen by OFAC and available
for execution and seizure by Villoldo. The complaint alleges that the acts set out in ING’s settlement with OFAC in 2012 constitute wire
fraud, money laundering and fraudulent transfer and that Villoldo is therefore entitled to actual damages in the amount to be
believed no less than USD 1.654 billion and treble damages of not less than USD 4.962 billion. In July 2015 the New York District Court
dismissed all claims with prejudice. Villoldo has filed a notice of appeal, indicating that they are challenging the New York District
Court’s order dismissing the case. At this moment it is not practicable to provide an estimate of the (potential) financial effect.
ING Bank Turkey has received various claims from (former) customers of legal predecessors of ING Bank Turkey. The claims are based
on offshore accounts held with these banks, which banks were seized by the Savings Deposit Insurance Fund (SDIF) prior to the
acquisition of ING Bank Turkey in 2007 from Oyak. SDIF has also filed various lawsuits against ING Bank Turkey to claim compensation
from ING Bank Turkey, with respect to amounts paid out to offshore account holders so far. ING Bank N.V. has initiated an arbitration
procedure against OYAK in which ING Bank seeks to be held harmless for these claims. At this moment it is not possible to assess the
outcome of these procedures nor to provide an estimate of the (potential) financial effect of these claims.
In the state aid related proceedings between the EC, the Dutch State and ING before the European Union Courts, the Court of Justice
rendered a final judgement on 3 April 2014 and dismissed the EC’s appeal against the General Court ruling of March 2012. As earlier
agreed in November 2012 between ING, the Dutch State and the EC, the outcome of this appeal will not affect the EC approval of ING’s
Amended Restructuring Plan. However, if ING does not fulfill any divestment commitment or does not meet any of the so called ‘2015
NN Bank-related commitments’, or in case of other material non-compliance with the Restructuring Plan, the Dutch State will re-notify
the recapitalisation measure to the EC. In such event the EC may open a (legal) procedure against ING, require additional restructuring
measures and/or take enforcement actions.
Future rental commitments for operating lease contracts1
ING Bank Annual Report 2015 132