Financial Crime World

Modern Slavery and Financial Crime Threaten Netherlands’ National Security

The Dutch Banking Association has recently released a comprehensive report highlighting the top threats to the Netherlands’ national security, with modern slavery, human exploitation, and financial crime topping the list.

Key Findings

The report identifies 88 financial crime threats, including:

  • Money laundering
  • Trade-based money laundering
  • Service-based money laundering
  • Currency counterfeiting
  • Organized crime
  • Infiltration of legitimate supply chains
  • Sanction evasion
  • State actors

A panel of experts selected the top 10 threats, which include:

Top 10 Threats

  1. Arms Trafficking: The Netherlands’ strategic geographic location and international trade hub status make it a prime target for arms traffickers.
  2. Bribery: Corruption is a significant threat to the country’s integrity and trust in institutions.
  3. Concealment of Beneficial Ownership: Criminals use complex structures and shell companies to hide their identities and avoid detection.
  4. Concealment of Identity: Illegal activities, such as money laundering and tax evasion, are often carried out through anonymous or fake identities.
  5. Drugs Economy: The illegal drug trade is a significant threat to public health and national security.
  6. Environmental Crime: Pollution, wildlife trafficking, and other environmental crimes pose serious risks to the environment and human health.
  7. Extremism: The infiltration of extremist groups into legitimate supply chains and financial systems is a growing concern.

Extent of the Threat

According to the report, there are over 230,000 illegal firearms circulating in the Netherlands, with 4,252 cases of illicit possession and trade registered in 2017. Additionally, tax evasion, terrorism financing, and money laundering are significant concerns.

Societal Impact

These financial crimes have serious consequences for society, including:

  • Corruption
  • Erosion of trust in institutions
  • Increased risk to national security

Call to Action

The Dutch Banking Association urges all stakeholders to take immediate action to combat these threats. This includes:

  • Strengthening regulations
  • Improving transparency and accountability
  • Enhancing cooperation between law enforcement agencies and the private sector

Full Report

A complete copy of the report can be found in appendix I.