Rise in White-Collar Crimes in Netherlands Antilles Amid Increased Enforcement Efforts

Growing Concerns in the Financial Sector

The Netherlands Antilles has witnessed a significant surge in white-collar crimes, including dividend stripping, environmental crime, corruption, fraud, tax evasion, and cybercrime. The Dutch government’s increased enforcement efforts and growing awareness among citizens about the importance of reporting such crimes have contributed to this uptick.

Dividend Stripping: A Growing Concern

• Dividend stripping involves temporarily transferring shares for tax purposes while retaining beneficial ownership.
• Several European countries, including the Netherlands, have launched investigations against banks, financial institutions, and intermediaries in connection with this issue.
• The Dutch tax and criminal authorities have publicly stated their focus on combating dividend stripping.

Environmental Crime: New Regulations and Sanctions

• The Environment and Planning Act, which came into force on January 1, 2024, introduces new duties of care for companies that hold permits, such as a prohibition on stopping an activity that mitigates adverse environmental effects.
• Violations can be sanctioned under criminal law too.
• Companies must comply with these regulations to avoid legal and reputational consequences.

Cross-Border Investigations: A Growing Trend

• Authorities from different countries are working together on specific cases, sharing information and evidence, and conducting joint operations across borders.
• This trend is expected to continue in 2024 as governments prioritize combating corruption, fraud, tax evasion, and cybercrime.

Whistleblowing Complaints: A Key Area of Focus

• Handling of whistleblowing complaints, especially in relation to harassment or bullying in the workplace, will be a key area of focus.
• In-house legal and investigation teams and GCs must ensure they have adequate policies and procedures to handle such complaints, protect the rights of whistleblowers and the accused, and comply with relevant legal and ethical standards.

Modernized Sanctions Act: Broadening Scope and Powers

• The modernized Sanctions Act is expected to broaden the scope and powers of the Dutch authorities to impose sanctions and investigate and prosecute violations.
• This, combined with increased resources for investigating sanctions breaches and a focus on prosecution, suggests that white-collar crimes will continue to be a major concern in the Netherlands Antilles.

Conclusion

The Netherlands Antilles is facing a significant rise in white-collar crimes due to increased enforcement efforts and growing awareness among citizens. The government’s focus on combating corruption, fraud, tax evasion, and cybercrime will continue, and cross-border coordinated investigations or enforcement activity will remain a key area of focus. In-house legal and investigation teams and GCs must be proactive and responsive to the demands and expectations of stakeholders and anticipate and mitigate potential legal and reputational risks.