The Netherlands' measures to combat money laundering and terrorist financing

Paris, 24 August 2022 - The Netherlands’ measures to combat money laundering and terrorist financing are delivering good results, but the country needs to do more to prevent legal persons from being used for criminal purposes, strengthen risk-based supervision, and ensure sanctions for money laundering and terrorist financing offences are proportionate and dissuasive.

The Netherlands’ main money laundering risks are related to fraud and drug related offences, which represent 90% of all Dutch proceeds of crime. The country faces terrorist financing risks from religious extremism such as ISIL and other UN designated groups, but also from extreme right-wing terrorism. The Netherlands has a good understanding of the risks it faces and has developed robust risk-based policies and strategies to address them, but it needs to address some outstanding technical deficiencies such as the regulation of virtual asset service providers.

Domestic inter-agency coordination and public-private partnerships are a key feature of the Dutch anti-money laundering and countering terrorist financing system. There is strong cooperation between the Dutch financial intelligence unit (FIU-NL) and law enforcement agencies, who regularly use high quality financial intelligence from FIU-NL, datahubs and cooperation platforms in the course of their investigations.

The Netherlands is also particularly effective in cooperating with its international partners. However, it should increase resources to improve risk-based supervision, including to address unlicensed activity and ensure proportionate and dissuasive sanctions for non-compliance with preventive measures.

The Netherlands pursues confiscation of criminal assets as a strategic priority. But the country must do more to prevent legal persons from being used for criminal purposes and to ensure there is access to adequate, accurate and current beneficial ownership information.

Dutch authorities have also successfully detected, investigated and prosecuted terrorist financing, primarily involving the funding of foreign terrorist fighters. The Netherlands proactively engages with the non-profit sector to avoid their abuse for terrorist financing and prevent de-risking. However, authorities should focus more on the reporting and supervision of the timely implementation of targeted financial sanctions for terrorist financing or proliferation financing.

The FATF adopted this report at its June 2022 Plenary meeting.

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Website : https://www.fatf-gafi.org/home/

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p/o Virginie Gastine Menou

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