Dutch Financial Crime Threat Assessment 2023-24: Top 20 Economic Crimes in the Netherlands

Background: Enhancing Financial Crime Countermeasures

The Dutch Banking Association (NVB) has published its annual Financial Crime Threat Assessment for the Netherlands, outlining the most pressing financial crimes impacting the country. In collaboration with the Dutch Central Bank and five participating banks, this report serves as a vital resource for banks in their risk management processes.

Identifying Relevant Threats: An Extensive Research

Comprehensive desk research and workshops with public sector experts, including the Financial Intelligence Unit (FIU), the Fiscal Intelligence and Investigation Service (FIOD), and the Netherlands Police, were conducted to select the financial crimes posing the most significant risk to the Dutch financial sector. From the initial 88 potential threats, the following 20 were selected for detailed discussion:

1. Arms trafficking
2. Bribery and corruption
3. Concealment of beneficial ownership and concealment of identity
4. Drugs economy, environmental crime, and extremism
5. Market facilitators, modern slavery, and organized crime at transport hubs
6. Payment fraud, public funding fraud, sanction evasion, state actors, tax evasion, terrorism financing, and trade-based money laundering
7. Underground banking and VAT fraud

Characteristics of the Dutch Financial Crime Landscape

The Netherlands, an international trading hub and mature financial sector, rapidly adopts new payment methods. Its strategic geographic location offers easy access to major European countries and the Schengen zone, as well as an advanced technology and digital environment, political stability, and favorable business environment. These factors contribute to the financial crime landscape, making the Netherlands a target for various financial crimes.

Continuous Threat Assessment: Crucial in Maintaining Effective Countermeasures

The Dutch Banking Association (NVB) and participating banks emphasize the importance of continuous financial crime threat assessments for financial institutions. The collaboration between public and private parties in the creation of this report is crucial in maintaining an effective financial crime countermeasure strategy and in safeguarding the Netherlands’ financial system.

For a comprehensive understanding of the threats identified and the characteristics of the Dutch financial crime landscape, please consult the full report on the Dutch Banking Association’s website.

Threat Categories:

1. Arms trafficking
2. Bribery and corruption
3. Money laundering: Concealment of beneficial ownership and identity
4. Transnational organized crime
   • Drugs economy
   • Environmental crime and extremism
   • Market facilitators and modern slavery
   • Organized crime at transport hubs
5. Financial crime: Fraud and manipulation
   • Payment fraud
   • Public funding fraud
   • Sanction evasion
   • State actors
   • Tax evasion
   • Terrorism financing
   • Trade-based money laundering
6. VAT fraud and underground banking

For detailed information on each threat category, please refer to the report.