Financial Crime World

Dutch Financial Crime Prevention Strategies Under Scrutiny: Country Urged to Strengthen Measures Against Money Laundering and Terrorist Financing

Assessment Reveals Positive Progress, but Outdated Challenges Remain

A recent assessment has highlighted the Netherlands’ efforts to combat money laundering and terrorist financing, while also identifying areas that require improvement. While the country’s initiatives have yielded positive results, there is still much work to be done to prevent legal persons from being used for criminal purposes, strengthen risk-based supervision, and ensure sanctions are proportionate and dissuasive.

Main Money Laundering Risks

  • 90% of all Dutch proceeds of crime are linked to fraud and drug-related offenses
  • The Netherlands faces significant terrorist financing risks stemming from religious extremism (ISIL and other UN-designated groups) and extreme right-wing terrorism

Outstanding Technical Deficiencies

  • Regulation of virtual asset service providers is a key area that requires improvement
  • Domestic inter-agency coordination and public-private partnerships are essential features of the Dutch anti-money laundering and countering terrorist financing system, but resources need to be increased to address these challenges.

Key Areas for Improvement

  • Increase risk-based supervision to address unlicensed activity and ensure proportionate and dissuasive sanctions for non-compliance
  • Improve access to accurate and current beneficial ownership information
  • Focus on reporting and supervising the timely implementation of targeted financial sanctions for terrorist financing or proliferation financing

Progress and Challenges

  • The Netherlands has made significant progress in confiscating criminal assets as a strategic priority, but more needs to be done to prevent legal persons from being used for criminal purposes.
  • Despite challenges, the country has successfully detected, investigated, and prosecuted terrorist financing cases primarily involving foreign terrorist fighters.

Call to Action

The assessment highlights that while the Netherlands has made progress in combating financial crime, there is still much work to be done. It is essential that the country addresses these outstanding challenges to remain at the forefront of combating financial crime and prevent legal persons from being used for criminal purposes.