Netherlands Antilles: Regulatory Enforcement Actions for Financial Crimes in 2023 and Beyond

The Netherlands Antilles has seen significant developments in regulatory enforcement actions for financial crimes in 2023. This article provides an overview of the key trends, law reforms, and enforcement activities in this area.

Whistleblowing Directive

On February 18, 2023, the Netherlands Antilles implemented the EU Whistleblowing Directive, introducing new provisions related to whistleblowers’ protection, reporting, and investigation. Key changes include:

• Greater protection for individuals who report breaches of EU law
• A new requirement that companies must appoint a third-party contact for whistleblowers
• An expanded definition of reporters, including temporary workers, trainees, and volunteers

AML Reforms

The Dutch Central Bank (DNB) has proposed reforms in its approach to Anti-Money Laundering (AML), allowing for more flexibility on some elements of AML compliance. The final version is expected in early 2024.

Sanctions Act

A modernized Sanctions Act is set to be adopted, broadening the scope and powers of the Dutch authorities to impose sanctions and investigate/prosecute violations.

Financial Sector Focus

The government has prioritized combating financial crimes, with a focus on:

• AML: DNB will continue to monitor and enforce AML compliance
• Supervision and regulation: New legislation aims to enable joint monitoring of transactions by banks, data sharing between institutions for customer due diligence in high-risk situations, and a ban on conduit companies and trust services involving high-risk countries or non-cooperative tax jurisdictions

Industrial Companies Focus

The Environment and Planning Act (Omgevingswet) came into force on January 1, 2024. It merges pre-existing environmental laws but introduces new duties of care for companies holding permits, such as a prohibition on stopping an activity that mitigates adverse environmental effects.

Multinational Businesses Focus

Ensuring compliance with international sanctions remains a priority for the Dutch authorities. They have increased resources to investigate sanctions violations and will continue to do so in 2024.

Cross-Border Coordinated Investigations

Dutch authorities increasingly use joint investigation teams (JITs) within the EU, as well as through cooperation agreements with third countries such as the U.S. and Switzerland, to work together on specific cases, share information and evidence, and conduct joint operations across borders.

In 2024, we predict an increased focus on prosecution of sanctions breaches, prosecution of dividend stripping, more activism and actions related to ESG issues, and more investigations relating to violations of environmental statutes. Authorities will likely scrutinize past behavior with the benefit of hindsight and applying future standards and social values, which may expose companies to future liability or criticism.