Financial Crime World

Dutch Financial Sector Braces for Surge in Financial Crime and Terrorism Financing Threats

Overview of the Financial Crime Threat Assessment 2023-24

The Dutch financial sector is gearing up to confront escalating challenges from financial crime and terrorism financing, as outlined in the latest assessment by the Dutch Banking Association (NVB). In this section, we’ll discuss the key findings of the assessment and the most pressing threats faced by the Dutch financial sector.

Dutch Financial Sector Challenges: An Overview

The Dutch Banking Association (NVB), in collaboration with public and private stakeholders, has released the “Financial Crime Threat Assessment of The Netherlands 2023-24.” This assessment provides insights into current and applicable threats to the financial sector.

  1. Threat Assessment Methodology: The report is based on a comprehensive review of publicly available information and expert feedback gathered during extensive workshops. Over 88 potential threats were identified and evaluated based on their relevance, impact, and connection to the specific conditions and landscape of The Netherlands.

  2. Primary Threats: Some of the most significant threats to the Dutch financial sector include:

    • Bribery and corruption
    • Conflict of interest
    • Concealment of beneficial ownership and identity
    • Drugs economy
    • Extremism

  3. Emerging Threats: Emerging risks that pose significant challenges to the financial sector as it evolves and digitalization progresses include:

    • Fragmentation of the payment landscape
    • Underground banking

  4. Collaboration and Mitigation: The assessment serves as a starting point for financial institutions, enabling them to adjust and bolster their risk management strategies accordingly. By fostering collaboration between sectors and strengthening gatekeeper effectiveness, the financial sector can combat financial crime and terrorism financing more effectively.

  5. Resources for Banks: The Financial Crime Threat Assessment will be followed by a risk scenario library for banks, accompanied by data from the Systematic Integrity Risk Assessment (SIRA). This resource is meant to provide banks with actionable information to assess and manage risks, helping them focus on threats with the most significant potential impact.

For further information on the assessment, including methodology and sources, please refer to the upcoming report from the Dutch Banking Association. Stay tuned for additional details on how this vital information can help enhance your organization’s defense against financial crime and terrorism financing.