Dutch Crackdown on Money Laundering and Terrorist Financing: A Work in Progress

Netherlands’ Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Efforts

Amsterdam, 24 August 2022 – The Dutch authorities have made progress in combating money laundering and terrorist financing, but they acknowledge the need for continued action to address certain technical shortcomings and strengthen their AML/CFT defenses.

National Risk Assessment

According to the latest National Risk Assessment:

1. The Netherlands’ primary money laundering risks stem from:
   • Fraud and drug offenses (approximately 90%)
2. The country also faces a terrorist financing threat from:
   • Religious extremism (ISIL, UN-designated groups)
   • Extreme right-wing terrorism

Key Challenges and Strengths

• Strong inter-agency cooperation: Dutch Financial Intelligence Unit (FIU-NL) and law enforcement agencies
• International cooperation: Egmont Group, Financial Action Task Force (FATF)
• Prioritizing asset confiscation: Significant successes
• Addressing legal entities’ misuse: Preventing tools for criminal activities
• Ensuring accurate beneficial ownership information
• Timely implementation of terrorist financing sanctions

Ongoing Efforts to Enhance AML/CFT Capabilities

Addressing Unlicensed Activity and Non-Compliance

There is a need to:

• Bolster resources for risk-based supervision
• Ensure proportionate and dissuasive penalties for non-compliance

Technical Shortcomings

• Regulation of virtual asset service providers

Tackling Terrorist Financing

Success Stories

• Detection, investigation, and prosecution of cases
  • Funding of foreign terrorist fighters

Strengthening Defenses

• Focusing more on reporting and supervision of terrorist financing-related activities