Financial Crime World

Financial Crime Threat Assessment: The Netherlands 2023-24

A Comprehensive Study on Modern Slavery, Human Exploitation, Money Laundering, and More

The Dutch Banking Association has released a comprehensive report on the financial crime threats facing The Netherlands. This assessment highlights 20 key threats, including modern slavery, human exploitation, money laundering, trade-based money laundering, service-based money laundering, and more.

Top 10 Financial Crime Threats

After analyzing publicly available information and expert input, the Dutch Banking Association selected the top 10 financial crime threats relevant to refine in further detail. These threats include:

  • Sanction Evasion
  • Trade- Based Money Laundering
  • Service-Based Money Laundering
  • Arms Trafficking
  • Bribery
  • Public Funding Fraud
  • Tax Evasion
  • Terrorism Financing
  • Organised Crime in Transport Hubs
  • Currency Counterfeiting

Arms Trafficking: A Growing Concern

Arms trafficking is a significant threat to The Netherlands, with the country serving as an important hub for international trade and being a transit and destination country for illegal arms.

Characteristics that contribute to this threat include:

  • Strategic geographic location
  • Membership in the European Union
  • Origin of traffickers from Germany, Belgium, and Balkan countries

Arms traffickers often use parcel packages and road transport to smuggle firearms into the country.

Extent of the Threat

According to police statistics, more than 230,000 illegal firearms circulated in The Netherlands in 2017. This number increased to over 6,500 cases by the end of 2021, translating to 37.9 cases per 100,000 of the population.

The Small Arms Survey estimates that the illicit trade and possession of arms in The Netherlands is a significant concern, with previous studies suggesting structural issues with registration or changes in enforcement laws may influence these numbers.

Sources

The report draws on expert input, as well as various sources, including:

  • Global Initiative against Transnational Organised Crime
  • The Netherlands Country Financial Crime Dashboard
  • Europol’s priorities for the fight against serious and organised crime
  • Universiteit Leiden’s study on firearm trafficking
  • National Risk Assessment Witwassen
  • Nationaal Dreigingsbeeld

A complete overview of sources can be found in appendix I.

The Dutch Banking Association’s report provides a comprehensive understanding of the financial crime threats facing The Netherlands, highlighting the need for effective measures to combat these risks and protect the country’s financial system.