Financial Crime World

Financial Crime Threat Assessment Highlights Top 20 Risks to Dutch Banking Sector

Introduction

The Dutch Banking Association has released its annual Financial Crime Threat Assessment, identifying the top 20 financial crime threats facing the Netherlands in 2023-24. The report provides a detailed analysis of each threat and highlights the most significant risks to the country’s financial sector.

Top 10 Threats Identified by Expert Groups

  • Sanction evasion
  • Tax evasion
  • Underground banking
  • Trade-based money laundering
  • Arms trafficking
  • Bribery
  • Concealment of beneficial ownership
  • Drugs economy
  • Environmental crime
  • Extremism

Arms Trafficking: A Growing Concern

The report notes that arms trafficking is a major concern for the Netherlands, due to its strategic geographic location and membership in the European Union. The threat is often associated with sanction evasion and involves the illegal trade of firearms from countries like Germany, Belgium, and the Balkans.

  • More than 230,000 illegal firearms circulated in the Netherlands in 2017
  • Over 6,500 cases of illicit arms trade by the end of 2021
  • Increase in illicit arms trade due to structural issues with registration and changes in enforcement

Other Top Threats

Bribery

  • A significant threat to the Dutch financial sector
  • Often carried out by organized crime groups

Concealment of Beneficial Ownership

  • A growing concern for financial institutions
  • Involves hiding true ownership of companies or assets

Drugs Economy

  • A major source of criminal income in the Netherlands
  • Often linked to other financial crimes, such as money laundering and tax evasion

Environmental Crime

  • Includes illegal activities such as pollution, waste dumping, and wildlife trafficking
  • Can have significant environmental and economic impacts

Extremism

  • A growing concern for the Dutch financial sector
  • Involves financing or supporting extremist groups or individuals

Conclusion

The Financial Crime Threat Assessment emphasizes the importance of understanding these threats to ensure effective risk management and compliance for financial institutions operating in the Netherlands. The report is available on the Dutch Banking Association website, along with a comprehensive appendix detailing the sources used in the assessment.

Full Report Available

  • A complete copy of the Financial Crime Threat Assessment is available online
  • Includes a detailed analysis of each threat and relevant statistics