Financial Crime World

Dutch Financial Sector Under Scrutiny in Transparency International’s Corruption Report

The Netherlands, renowned for its strong financial sector, is under investigation in Transparency International’s latest “Exporting Corruption” report. This report raises concerns about the country’s limited enforcement efforts, lengthy investigations, and complex nature of foreign bribery cases.

Concerns and Statistical Data

  • The Dutch economy represents only 3.1% of global exports, but its corporations have been involved in several high-profile corruption scandals. [1]
  • Between 2016 and 2019, Dutch authorities initiated 16 investigations, commenced two cases, and concluded three cases involving foreign bribery, with sanctions imposed. [1]

Notable Cases

Shell in Nigeria

The Netherlands’ NPPS is preparing charges against Shell for a corrupt deal in Nigeria. The investigation alleges that most of the $1.3 billion purchase price for an exploration license was used to bribe politicians and middlemen. Shell’s headquarters were raided in 2016 as part of a joint investigation with Italian financial police. [1]

ING Bank Scandal

In 2018, Dutch authorities settled an investigation into ING Bank for suspected facilitation of international corruption and money laundering. ING agreed to pay €675 million ($771 million) as a penalty and €100 million ($114 million) as disgorgement to the NPPS. Former CEO Ralph Hamers is now being summoned to testify in a related court case. [1]

Dutch Financial Sector Scrutiny in 2020

The Dutch financial sector faced increased scrutiny in 2020. The Dutch embassy in Nigeria reportedly shared confidential information with Shell about a financial investigation, and a local staff member who exposed the information was subsequently dismissed. The Dutch Parliament is now investigating the matter. [1]

Recent Developments

Government’s Plan to Implement the 5th EU Anti-Money Laundering Directive

The Dutch government is planning to implement the 5th EU Anti-Money Laundering Directive. This directive aims to strengthen transparency and financial controls within the Dutch financial sector. [1]

Transaction Monitoring Netherlands

The Dutch financial sector is focusing on the identification of unusual financial transaction patterns through Transaction Monitoring Netherlands. [1]

Persistent Concerns

Lack of Transparency in Enforcement and Beneficial Ownership

Despite these efforts, concerns remain regarding the lack of transparency in enforcement and beneficial ownership. [1]

  • The Netherlands currently does not have a central register of beneficial ownership.
  • Corrupt individuals are using the Dutch trust industry to funnel illicitly gained funds. [1]

Call to Action

Transparency International calls on the Dutch authorities to take further actions:

  • Expand jurisdiction over foreigners employed by Dutch companies for foreign bribery.
  • Evaluate and improve protection for whistleblowers.
  • Raise awareness among small and medium-sized enterprises of their potential role in foreign bribery. [1]

[1] Transparency International. (2020). Exporting corruption: The Netherlands. Retrieved from https://www.transparency.org/en/publications/2020/exporting-corruption-the-netherlands.