Dutch Authorities Praised for Efforts in Combating Financial Crime, But More Work Needed

The Netherlands has made significant strides in preventing money laundering and terrorist financing, but experts warn that there is still much to be done to strengthen the country’s defenses against financial crime.

Challenges Facing the Netherlands

• Use of legal persons for criminal purposes: This represents a significant challenge in preventing money laundering and terrorist financing.
• Weak risk-based supervision: The country needs to strengthen its risk-based supervision to address this issue.
• Insufficient sanctions for non-compliance: Sanctions for non-compliance with preventive measures need to be proportionate and dissuasive.

Successes in Combating Financial Crime

• Strong cooperation between domestic agencies and public-private partnerships: The Dutch financial intelligence unit (FIU-NL) has been praised for its strong cooperation with law enforcement agencies.
• Recognition as a leader in cooperating with partners to combat financial crime: Internationally, the Netherlands is recognized as a leader in cooperating with its partners to combat financial crime.

Areas for Improvement

• Increasing resources for risk-based supervision: The country needs to increase resources to improve risk-based supervision and address unlicensed activity.
• Pursuit of confiscation of criminal assets: The pursuit of confiscation of criminal assets has been identified as a strategic priority for the Dutch authorities, but more needs to be done.
• Addressing terrorist financing risks: While the Netherlands has been successful in detecting and prosecuting terrorist financing cases involving foreign terrorist fighters, experts recommend that authorities should focus more on reporting and supervision of targeted financial sanctions for terrorist financing or proliferation financing.

Conclusion

Overall, while the Dutch efforts in combating financial crime have been praised, there is a clear need for continued improvement to strengthen the country’s defenses against financial crime. By addressing these outstanding issues, the Netherlands can further solidify its position as a leader in preventing money laundering and terrorist financing.