Financial Crime World

Cross-Border Financial Crime on the Rise in Netherlands

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The Netherlands has seen a significant surge in cross-border financial crime cases in 2023, with authorities cracking down on various forms of illicit activities. As the country continues to be a hub for international trade and finance, the risk of financial crime is expected to remain high in 2024.

Assessment of Privileged Information

  • The scope of legal privilege remains a contentious issue in the Netherlands, with the Dutch Public Prosecutions Service (DPPS) facing scrutiny over its assessment of privileged information.
  • This has led to concerns about the balance between protecting sensitive information and ensuring accountability.

Dividend Stripping

  • Dividend stripping, which involves temporarily transferring shares for tax purposes while retaining beneficial ownership, has been identified as a key area of focus for authorities.
  • This practice is often used by individuals and companies to minimize tax liabilities, but can be considered a form of financial crime.

Complaints Filed Against Corporations

  • There has been an increase in complaints filed by NGOs and special-interest groups against major corporations and their executives, leading to the opening of criminal investigations.
  • These complaints often relate to allegations of misconduct, such as harassment, bullying, or other forms of wrongdoing.

Workplace Investigations

  • Workplace investigations have become more prevalent in response to allegations or suspicions of harassment, bullying, or other forms of misconduct.
  • These investigations are crucial for ensuring a safe and respectful work environment.

Sectors Targeted by Law Reforms or Criminal Enforcement

Financial Sector

  • The financial sector is a key area of focus for authorities, with reforms proposed to strengthen supervision and regulation of financial institutions.
  • This includes measures to prevent money laundering and terrorist financing.

Industrial Companies

  • Industrial companies are under increased scrutiny due to the introduction of new duties of care under the Environment and Planning Act (Omgevingswet).
  • These duties require companies to take steps to minimize their environmental impact.

Multinational Businesses

  • Multinational businesses are being targeted for ensuring compliance with international sanctions, with resources increased to investigate violations.
  • This includes measures to prevent the use of sanctioned countries or entities in business operations.

Predictions for 2024

Whistleblowing Complaints

  • Whistleblowing complaints will continue to be a major focus area, with authorities expected to increase scrutiny of internal policies and procedures.
  • This includes measures to protect whistleblowers from retaliation.

Sanctions Breaches

  • The prosecution of sanctions breaches is expected to become more prominent, with the modernized Sanctions Act broadening the scope and powers of Dutch authorities.
  • This will include increased penalties for non-compliance.

Dividend Stripping Investigations

  • Investigations related to dividend stripping are also predicted to increase in 2024.
  • Authorities will continue to crack down on this practice, which is often used to minimize tax liabilities.