Combating Financing of Terrorism in the Netherlands: A Mixed Bag, Says Report

Amsterdam - The Dutch government’s efforts to combat the financing of terrorism have been deemed “largely compliant” by international standards, according to a recent report.

Overview

The report, released by the Financial Action Task Force (FATF), evaluates the Netherlands’ implementation of its technical requirements for combating terrorist financing and money laundering. The assessment reveals that the country is largely compliant with 24 out of the 40 recommendations set forth by the FATF.

Strengths and Weaknesses

Strengths:

• Assessing risk and applying a risk-based approach, earning an “LC” rating (largely compliant)
• National cooperation and coordination efforts
• Measures to confiscate and freeze terrorist assets

Weaknesses:

• Financial institution secrecy laws were deemed “C” compliant (compliant), which may hinder anti-money laundering efforts
• Customer due diligence requirements for certain businesses and professions received a “LC” rating, indicating room for improvement

Recommendations

The report also highlighted the need for:

• Enhanced supervision and regulation of financial institutions
• Improved cooperation with foreign authorities to combat terrorist financing

Response from Dutch Officials

In response to the report, Dutch officials have vowed to address these shortcomings and strengthen their anti-money laundering and counter-terrorism measures. The government has committed to implementing additional reforms and increasing international cooperation to ensure that the country remains a leader in combating terrorist financing.

Accessing the Report

The full report can be accessed on the FATF’s website.