Netherlands: Internal Compliance Programme for Strategic Goods, Torture Goods, Technology and Sanctions

The Dutch government has introduced the “ICP Guidelines” (Internal Compliance Programme) to ensure compliance with strategic goods, torture goods, technology, and sanctions regulations. The guidelines are mandatory for obtaining a global licence, which allows companies to engage in multiple transactions involving various items destined for different countries.

Enforcement

Criminal Penalties

• Are there criminal penalties for violating economic sanctions laws and/or regulations?
  • Yes, the Dutch government has established criminal penalties for non-compliance with economic sanctions laws and regulations. Violations can result in fines, imprisonment, or both.
• What is the statute of limitations for economic sanctions violations?
  • Minor offenses become time-barred three years after the relevant offense was committed. Serious offenses (wilfully committed) only become time-barred 12 years after the relevant offense was committed.

General

Proposed and Under Consideration

• Are there any additional economic sanctions-related measures proposed or under consideration?
  • Yes, the Dutch government is planning to modernize its sanctions regime by extending administrative supervision on compliance with sanctions, providing for a reporting obligation that sets legal privilege aside, and expanding supervisory and enforcement powers. The government also plans to provide a framework for the long-term management of frozen assets.
• How can one obtain relevant economic sanctions laws, regulations, administrative actions, and guidance from the Internet?
  • Relevant laws and regulations are available on the Dutch government’s website, but not in English. Some high-level general information on sanctions is provided by the Dutch government and available in English, as well as additional information from the Central Import and Export Service.

Additional Information

Sanctions Regimes

• The Netherlands has implemented various sanctions regimes, including those targeting Russia, Iran, North Korea, and other countries. Companies operating in the Netherlands must ensure compliance with these regulations to avoid severe penalties.
• The ICP Guidelines provide a framework for companies to implement effective internal controls to prevent violations of economic sanctions laws and regulations. The guidelines cover areas such as risk assessment, due diligence, record-keeping, and reporting requirements.

Conclusion

The Dutch government has taken significant steps to strengthen its sanctions regime and enforcement powers. Companies operating in the Netherlands must ensure compliance with these regulations to avoid severe penalties. The ICP Guidelines provide a framework for companies to implement effective internal controls to prevent violations of economic sanctions laws and regulations.