Financial Crime World

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Torture Goods, Technology, and Sanctions: Navigating the Netherlands’ Compliance Landscape

The Netherlands has implemented a robust system to prevent the misuse of torture goods, technology, and sanctions. The country’s internal compliance programme (ICP) guidelines provide a framework for companies to ensure they are in compliance with EU sanctions regulations.

ICP Guidelines

The ICP guidelines are structured around seven core elements:

  • Commitment to Compliance: A commitment to comply with EU sanctions regulations.
  • Structure and Responsibility: Clear structure and responsibility within the company for sanctions compliance.
  • Export Screening Procedure: Procedures for screening exports against EU sanctions lists.
  • Reporting Obligations: Reporting obligations for sanctions-related activities.
  • Internal Controls: Internal controls to ensure compliance with sanctions regulations.
  • Training and Awareness: Training and awareness programs for employees on sanctions compliance.
  • Continuous Monitoring and Improvement: Continuous monitoring and improvement of sanctions compliance processes.

These guidelines provide a comprehensive framework for companies to ensure they are in compliance with EU sanctions regulations.

EU Sanctions

The EU has imposed various sanctions on Russia, including restrictions on the export of certain goods and technologies. The Netherlands has implemented these sanctions through its own laws and regulations.

Dutch Sanctions Regime

The Dutch sanctions regime is governed by the Sanctions Act 1977, which provides for administrative supervision and enforcement powers. The Ministry of Foreign Affairs has announced plans to modernize the Dutch sanctions regime, including:

  • Extending administrative supervision
  • Providing for a reporting obligation
  • Strengthening supervisory and enforcement powers

Accessing Relevant Materials

Relevant laws and regulations can be found on the Dutch government’s website, although they are not available in English. Some high-level general information on sanctions is provided by the Dutch government and available in English. The Central Import and Export Service also provides some information on sanctions in English.

Statute of Limitations

The statute of limitations for economic sanctions violations in the Netherlands varies depending on whether it is a minor or serious offence:

  • Minor offences become time-barred three years after the relevant offence was committed.
  • Serious offences become time-barred 12 years after the relevant offence was committed.

Whistleblower Tool

The EU has introduced a whistleblower tool to report on past, ongoing, or planned sanctions violations and circumvention attempts. The tool is designed to be used by individuals with information about sanctions violations and can provide assistance in investigations.

Enforcement

Economic sanctions violations are enforced by the Dutch authorities through administrative supervision and enforcement powers. Companies found to be non-compliant may face penalties and fines.

Conclusion

The Netherlands has implemented a robust system to prevent the misuse of torture goods, technology, and sanctions. Companies operating in the country must ensure they are in compliance with EU sanctions regulations and follow the ICP guidelines. The Dutch government is also planning to modernize its sanctions regime to strengthen enforcement powers and improve supervision.

Production Editor’s Note

This chapter has been written by a member of ICLG’s international panel of experts, who has been exclusively appointed for this task as a leading professional in their field by Global Legal Group, ICLG’s publisher. The chapter has been carefully reviewed and edited by Hollie Parker, our in-house editor.