Financial Crime World

Financial Crime Investigation Methods in Netherlands Antilles Undergo Significant Shifts in 2023

The year 2023 marked significant developments in financial crime investigation methods in the Netherlands Antilles, with a focus on tackling complex financial crimes such as dividend stripping and money laundering. The Dutch authorities have also been working to strengthen their laws and regulations to combat these crimes.

Increased Scrutiny of Internal Investigations Conducted by Lawyers

One of the key trends in 2023 was the increased scrutiny of internal investigations conducted by lawyers. The Dutch Supreme Court issued a preliminary ruling on the scope of legal privilege, which has led to delays in ongoing criminal investigations as the authorities are now required to engage an examining magistrate to select data or filter it for confidentiality.

Combatting Dividend Stripping

The practice of dividend stripping, which involves temporarily transferring shares for tax purposes while retaining beneficial ownership, was also a focus area for the Dutch authorities. In 2023, the tax and criminal authorities announced their intention to combat this practice, inviting banks and financial institutions to review their compliance with anti-money laundering regulations.

Cross-Border Coordinated Investigations

The Netherlands Antilles has also seen an increase in cross-border coordinated investigations or enforcement activity, with joint investigation teams (JITs) being used to work on specific cases across borders. The Dutch Public Prosecution Service has started using civil action against entities that violate sanctions, and compliance and human rights violations in supply chains will continue to be a focal point.

Predictions for 2024

Looking ahead to 2024, the handling of whistleblowing complaints, especially those related to harassment or bullying in the workplace, is expected to become more complex. In-house legal and investigation teams and general counsel will need to ensure they have adequate policies and procedures in place to handle such complaints, protect the rights of whistleblowers and the accused, and comply with relevant legal and ethical standards.

Modernized Sanctions Act

The modernized Sanctions Act, which is set to be adopted soon, broadens the scope and powers of the Dutch authorities to impose sanctions and investigate violations. This may lead to an increase in prosecutions for sanctions breaches.

Environmental Crimes

Environmental crimes are also becoming a growing concern, with the Environment and Planning Act coming into force on January 1, 2024, introducing new duties of care for companies that hold permits and prohibiting stopping an activity that mitigates adverse environmental effects. Violations can be sanctioned under criminal law.

Key Sectors Targeted by Law Reforms or Criminal Enforcement

  • Financial sector: Anti-money laundering (AML) remains a high priority for the Dutch Central Bank (DNB), but DNB is proposing reforms in its approach, allowing for more flexibility on some elements of AML compliance.
  • Industrial companies: The Environment and Planning Act (Omgevingswet) came into force on January 1, 2024, merging many pre-existing environmental laws and introducing new duties of care for companies that hold permits.
  • Multinational businesses: Ensuring compliance with international sanctions remains a priority for the Dutch authorities. They have increased resources to investigate sanctions violations, and they will continue to do so in 2024.

Cross-Border Coordinated Investigation or Enforcement Activity

  • Joint investigation teams (JITs): are being used to work on specific cases across borders.
  • The Dutch Public Prosecution Service: has started using civil action against entities that violate sanctions.
  • Compliance and human rights violations in supply chains: will continue to be a focal point.

Predictions for 2024

  • Handling of whistleblowing complaints: especially those related to harassment or bullying in the workplace, is expected to become more complex.
  • The modernized Sanctions Act: which is set to be adopted soon, broadens the scope and powers of the Dutch authorities to impose sanctions and investigate violations.
  • Environmental crimes: are becoming a growing concern.