Financial Crime World

Global Financial Crime Trends in Netherlands Antilles: A Year in Review

The scope of legal privilege remains a contentious issue in the Netherlands, with the Dutch Public Prosecutions Service (DPPS) publishing a draft instruction on legal privilege for public consultation. However, the consultation was put on hold due to a preliminary ruling by the Supreme Court on the assessment of privileged information.

Dividend Stripping: A Focus Area

The practice of dividend stripping, which involves temporarily transferring shares for tax purposes while retaining beneficial ownership, has been identified as a priority area by Dutch authorities. Market participants are being encouraged to come forward with information on this issue.

Sectors Targeted by Law Reforms or Criminal Enforcement

Several sectors have been targeted by law reforms or criminal enforcement in the Netherlands Antilles:

  • Financial sector: The Dutch Central Bank (DNB) has prioritized anti-money laundering (AML) compliance, and new legislation is being prepared to strengthen supervision and regulation of financial institutions.
  • Industrial companies: The Environment and Planning Act (Omgevingswet) came into force on January 1, 2024, introducing new duties of care for companies holding permits and prohibiting activities that mitigate adverse environmental effects.
  • Multinational businesses: Ensuring compliance with international sanctions remains a priority area, with the Dutch Public Prosecution Service increasing resources to investigate sanctions violations.

Cross-Border Coordinated Investigation or Enforcement Activity

The use of joint investigation teams (JITs) within the EU and through cooperation agreements with third countries has increased. JITS enable authorities from different countries to work together on specific cases, share information and evidence, and conduct joint operations across borders.

Predictions for 2024

Handling whistleblowing complaints related to harassment or bullying in the workplace is expected to be a significant challenge, as in-house legal and investigation teams and GCs will need to ensure adequate policies and procedures are in place. Increased focus on prosecution of sanctions breaches and dividend stripping is also predicted, as well as more activism and actions related to environmental, social, and governance (ESG) issues.

Looking Further Ahead

A shift from asking ‘is it legal?’ to ‘is it legitimate?’ is expected in the context of ESG, with authorities scrutinizing past behavior with the benefit of hindsight and applying future standards and social values. This may expose companies to future liability or criticism.