FATF Recommendations in Netherlands Antilles Deliver Mixed Results, Official Says
The Netherlands has made significant progress in combating money laundering and terrorist financing, but still faces several challenges to effectively prevent legal persons from being used for criminal purposes and strengthen risk-based supervision.
Main Money Laundering Risks
According to a senior official, the country’s main money laundering risks stem from fraud and drug-related offenses, which account for 90% of all Dutch proceeds of crime. The Netherlands also faces terrorist financing risks linked to religious extremism such as ISIL and other UN-designated groups, as well as extreme right-wing terrorism.
Technical Deficiencies
While the country has a good understanding of the risks it faces and has developed robust risk-based policies and strategies to address them, it still needs to address technical deficiencies. These include:
- Regulation of virtual asset service providers
- Improving risk- based supervision
Domestic Inter-Agency Coordination and Public-Private Partnerships
Domestic inter-agency coordination and public-private partnerships are key features of the Dutch anti-money laundering and counter-terrorism financing system.
Financial Intelligence Unit (FIU-NL) and Law Enforcement Agencies
The financial intelligence unit (FIU-NL) and law enforcement agencies work closely together, utilizing high-quality financial intelligence from FIU-NL, data hubs, and cooperation platforms in their investigations.
International Cooperation
The Netherlands has also been successful in international cooperation, but it needs to increase resources to:
- Improve risk-based supervision
- Address unlicensed activity
- Ensure proportionate and dissuasive sanctions for non-compliance with preventive measures
Confiscation of Criminal Assets
Confiscation of criminal assets is a strategic priority for the country, but it must do more to:
- Prevent legal persons from being used for criminal purposes
- Ensure access to adequate, accurate, and current beneficial ownership information
Terrorist Financing Cases
Dutch authorities have successfully detected, investigated, and prosecuted terrorist financing cases, primarily involving the funding of foreign terrorist fighters.
Reporting and Supervision
However, the country should focus more on:
- Reporting and supervising the timely implementation of targeted financial sanctions for terrorist financing or proliferation financing
- Engaging with the non-profit sector to prevent their abuse for terrorist financing and de-risking.