Financial Crime World

Title: Dutch Anti-Money Laundering Efforts: Positive Outcomes but More Action Needed

Overview

Amsterdam, September 1, 2022 - The Netherlands has made significant strides in curbing money laundering and terrorist financing, but there is still more work to be done. According to a new report from AML Partners, the country must address residual technical inadequacies, particularly regarding the oversight of virtual asset service providers, and take steps to prevent legal entities from being used in criminal activities, among other recommendations.

Primary Money Laundering Risks

The primary risks for money laundering in the Netherlands come from fraud and drug-related offenses, which account for 90% of all proceeds of crime. The country also faces potential terrorist financing risks from extremist groups such as ISIL and other UN-designated entities, as well as extreme right-wing terrorism.

Strengths of Dutch AML Framework

Despite these challenges, the Netherlands has a solid grasp of the threats it faces and has developed thorough risk-based policies and strategies to counteract them. Effective inter-agency coordination and public-private partnerships characterize the Dutch anti-money laundering and countering terrorist financing framework. The Dutch Financial Intelligence Unit (FIU-NL) collaborates closely with law enforcement agencies, leading to fruitful investigations.

Areas for Improvement

The report recommends investing in enhancing risk-based supervision, addressing unlicensed activity, and ensuring commensurate and dissuasive penalties for noncompliance with preventative measures. Confiscation of criminal assets is a priority for Dutch authorities, but more must be done to prevent legal entities from being exploited for criminal purposes and to ensure access to comprehensive, accurate, and current beneficial ownership information.

Tackling Terrorist Financing

The Netherlands has successfully tackled terrorist financing cases, primarily focused on funding for foreign terrorist fighters. However, the report suggests prioritizing the reporting and supervision of the timely implementation of targeted financial sanctions for terrorist financing or proliferation financing.

  • The Netherlands has made significant progress in curbing money laundering and terrorist financing.
  • Fraud and drug-related offenses are the primary money laundering risks.
  • Potential terrorist financing risks come from extremist groups and right-wing terrorism.
  • Effective inter-agency coordination and public-private partnerships are key to the Dutch AML framework.
  • The Dutch Financial Intelligence Unit collaborates closely with law enforcement agencies to gather high-quality financial intelligence.
  • Investing in enhancing risk-based supervision, addressing unlicensed activity, and ensuring commensurate and dissuasive penalties for noncompliance are essential next steps.
  • Preventing legal entities from being exploited for criminal purposes and ensuring access to comprehensive, accurate, and current beneficial ownership information are crucial.
  • The Netherlands has been successful in tackling terrorist financing cases but should prioritize the reporting and supervision of targeted financial sanctions.