Financial Crime World

WHITE COLLAR CRIMES ON THE RISE IN NETHERLANDS FINANCE SECTOR

Amsterdam, Netherlands - The Dutch Finance Sector Under Scrutiny

The Dutch finance sector is bracing for a wave of white collar crimes as authorities intensify their efforts to combat corruption, tax evasion, and environmental crime. Recent trends suggest that the scope of legal privilege remains a contentious issue, while internal investigations by lawyers face increased scrutiny.

A Delicate Balance Between Privilege and Prosecution

The Dutch Public Prosecutions Service (DPPS) has been at odds with the judiciary over the scope of legal privilege. The DPPS published a draft instruction on legal privilege for public consultation in early 2023, but the Dutch Supreme Court was asked to issue a preliminary ruling on the matter, effectively putting the consultation on hold.

DIVIDEND STRIPPING IN THE SPOTLIGHT

A Growing Concern for Tax and Criminal Authorities

The practice of dividend stripping has come under intense scrutiny by tax and criminal authorities. Several European countries, including the Netherlands, have launched investigations against banks, financial institutions, and intermediaries in this regard.

FINANCIAL SECTOR TARGETED BY REFORMS AND ENFORCEMENT

Strengthening Supervision and Regulation

The Dutch Central Bank (DNB) has proposed reforms to its approach to anti-money laundering (AML) compliance, allowing for more flexibility on some elements of AML. However, the final version is expected in early 2024. The government is also preparing new legislation to strengthen the supervision and regulation of financial institutions.

INDUSTRIAL COMPANIES FACE NEW DUTIES OF CARE

Environmental Responsibilities

The Environment and Planning Act (Omgevingswet) came into force on January 1, introducing new duties of care for companies that hold permits. Violations can be sanctioned under criminal law too.

MULTINATIONAL BUSINESSES UNDER SCRUTINY FOR COMPLIANCE WITH INTERNATIONAL SANCTIONS

Ensuring Compliance with Global Sanctions

Ensuring compliance with international sanctions remains a priority for the Dutch authorities. They have increased resources to investigate sanctions violations and will continue to do so in 2024.

WHISTLEBLOWING COMPLAINTS AND ENVIRONMENTAL ISSUES TO DOMINATE 2024

Handling Whistleblowing Complaints and Environmental Concerns

Handling of whistleblowing complaints, especially in relation to harassment or bullying in the workplace, is expected to be a major challenge for companies in 2024. Additionally, environmental issues such as climate change and human rights will continue to attract attention from authorities.

PREDICTIONS FOR 2024

  • Increased focus on prosecution of sanctions breaches
  • More activism and actions related to ESG-related issues
  • More investigations relating to violations of environmental statutes

The Dutch finance sector is facing a complex web of regulations and enforcement efforts, making it essential for companies to stay vigilant and proactive in managing their compliance risks.