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Financial Crime Threat Assessment of The Netherlands 2023-24

Concealment of Beneficial Ownership

Concealment of beneficial ownership refers to hiding the true owner or controller of an entity, often through complex financial structures, shell companies, or nominees. This can be used to evade taxes, conceal money laundering activities, and avoid regulatory scrutiny.

Characteristics in The Netherlands

  • The Netherlands has a relatively open business environment, which makes it attractive for entrepreneurs and businesses.
  • However, this openness also increases the risk of concealing beneficial ownership.

Modus Operandi

  • Concealment of beneficial ownership is often carried out by using complex financial structures, such as shell companies or nominee accounts, to hide the true owner’s identity.

Extent of the Threat in The Netherlands

  • There have been several high-profile cases in the Netherlands where beneficial owners were concealed, including a case involving a real estate company that was used to launder money.
  • Sources:
    • Expert input
    • Dutch Central Bank (2022) – Annual Report
    • Ministry of Finance (2019) – Action Plan against Money Laundering

Concealment of Identity

Concealment of identity refers to hiding one’s true identity, often through the use of fake documents, pseudonyms, or other means.

Characteristics in The Netherlands

  • The Netherlands has a high degree of anonymity, which makes it easier for individuals to conceal their identities.
  • This increases the risk of financial crimes being committed without detection.

Modus Operandi

  • Concealment of identity is often carried out by using fake documents, such as passports or ID cards, or by assuming a pseudonym.

Extent of the Threat in The Netherlands

  • There have been several cases in the Netherlands where individuals concealed their identities to commit financial crimes, including tax evasion and money laundering.
  • Sources:
    • Expert input
    • Dutch National Police (2022) – Annual Report
    • Ministry of Justice and Security (2019) – Action Plan against Serious Crime

Drugs Economy

The drugs economy refers to the illicit trade in narcotics, including production, transportation, sale, and distribution.

Characteristics in The Netherlands

  • The Netherlands has a long history of tolerance towards cannabis use, which has created a large market for recreational users.
  • However, this has also led to an increase in organized crime groups involved in the production and distribution of harder drugs.

Modus Operandi

  • Organized crime groups often use complex financial structures, such as money laundering schemes, to launder their profits from the drugs trade.

Extent of the Threat in The Netherlands

  • The drugs economy is a significant threat to the Netherlands, with organized crime groups involved in the production and distribution of harder drugs, including cocaine and heroin.
  • Sources:
    • Expert input
    • Dutch National Police (2022) – Annual Report
    • Ministry of Justice and Security (2019) – Action Plan against Serious Crime

Environmental Crime

Environmental crime refers to any activity that causes harm to the environment, including pollution, deforestation, and wildlife trafficking.

Characteristics in The Netherlands

  • The Netherlands has a strong tradition of environmental protection, which makes it an attractive location for companies seeking to reduce their environmental footprint.
  • However, this also increases the risk of environmental crime.

Modus Operandi

  • Environmental crime is often carried out by individuals or companies that seek to profit from the exploitation of natural resources.

Extent of the Threat in The Netherlands

  • There have been several cases in the Netherlands where environmental crimes were committed, including a case involving a company that was fined for polluting a river.
  • Sources:
    • Expert input
    • Dutch Ministry of Infrastructure and Water Management (2022) – Annual Report
    • National Institute for Public Health and the Environment (RIVM) (2019) – Environmental Crime in the Netherlands