Title: Dutch Authorities Make Strides in Anti-Money Laundering and Counter-Terrorist Financing: A Comprehensive Assessment

Progress and Challenges in the Dutch Anti-Money Laundering and Counter-Terrorist Financing Landscape

Paris, August 24, 2022 - The Netherlands has demonstrated significant advancements in the combat against money laundering and terrorist financing, as evidenced by the latest assessment. However, there are crucial areas where improvement is required.

Risks and Threats

The Dutch financial sector confronts two primary risks: money laundering and terrorist financing.

Money Laundering Risks

• Overwhelmingly dominated by fraud and drug-related crimes, accounting for approximately 90% of Dutch proceeds of illicit origin

Terrorist Financing Risks

• Exposure to risks from religious extremism, particularly associated with groups like ISIL
• Extreme right-wing terrorism also poses a threat

Dutch Authorities’ Responses and Challenges

Understanding the Risks

• Comprehensive recognition of threats
• Development of risk-based strategies

Technical Challenges

• Requires addressing:
  • Regulation of virtual asset service providers

Collaboration and Partnerships

• Domestic collaboration (FIU-NL and law enforcement)
  • Regular exchange of financial intelligence
  • Datahubs and cooperation platforms
• International cooperation
• Strengthening risk-based supervision
  • Allocate resources for targeted addressing of unlicensed activity
  • Deterrent sanctions for non-compliance with preventive measures

Asset Confiscation: A Strategic Priority

• Significant emphasis on the confiscation of criminal assets

Ongoing Efforts: Preventing Legal Entities from Criminal Activities and Ensuring Access to Accurate Beneficial Ownership Information

• Block unlawful use of legal entities for criminal activities
• Access to up-to-date, adequate, and accurate beneficial ownership information

Case Studies: Dutch Successes in Countering Terrorist Financing

• Main accomplishments: detection, investigation, and prosecution of financing for foreign terrorist fighters

Future Steps in the Dutch Anti-Money Laundering and Counter-Terrorist Financing Efforts

• Increase focus on:
  • Timely reporting and implementation of targeted financial sanctions for terrorist financing
  • Proliferation financing
• Engage effectively with the non-profit sector to impede misuse for terrorist financing
• Prevent de-risking