Countries/Jurisdictions of Primary Concern - Netherlands
The Netherlands is a major financial center and consequently an attractive venue for laundering funds generated from illicit activities, including activities often related to the sale of cocaine, cannabis, or synthetic and designer drugs, such as ecstasy. Financial fraud, especially tax-evasion, is believed to generate a considerable portion of domestic money laundering activity. There are a few indications of syndicate-type structures in organized crime and money laundering, but there is virtually no black market for smuggled goods in the Netherlands. Although few border controls exist within the Schengen Area of the EU, Dutch authorities run special operations in the border areas with Germany and Belgium and in the Port of Rotterdam to keep smuggling to a minimum.
Six islands in the Caribbean fall under the jurisdiction of the Kingdom of the Netherlands. Bonaire, St. Eustatius, and Saba are special municipalities of the Netherlands. Aruba, Curacao, and St. Maarten are countries within the Kingdom of the Netherlands. The Netherlands provides supervision for the courts and for combating crime and drug trafficking within the Kingdom. As special municipalities, Bonaire, St. Eustatius, and Saba are officially considered “public bodies” under Dutch law.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/
Do FINANCIAL INSTITUTIONs engage in currency transactions related to international narcotics trafficking that include significant amounts of US currency; currency derived from illegal sales in the U.S.; or illegal drug sales that otherwise significantly affect the U.S.: NO
criminalizATION OF money laundering:
“All serious crimes” approach or “list” approach to predicate crimes: All serious crimes
Are legal persons covered: criminally: YES civilly: NO
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: NO
KYC covered entities: Banks, credit institutions, securities and investment institutions, providers of money transaction services, life insurers and insurance brokers, credit card companies, casinos, traders in high value goods, accountants, lawyers and independent legal consultants, business economic consultants, tax consultants, real estate brokers and surveyors, estate agents, civil law notaries, trusts and asset administrative companies, and electronic money institutions
Number of STRs received and time frame: 25,321 in 2013
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks, credit institutions, securities and investment institutions, providers of money transaction services, life insurers and insurance brokers, credit card companies, casinos, traders in high value goods, accountants, lawyers and independent legal consultants, business economic consultants, tax consultants, real estate brokers, estate agents, civil law notaries, trusts and asset administrative companies, and taxation offices
money laundering criminal Prosecutions/convictions:
Prosecutions: Not available
Convictions: Not available
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
The Netherlands is a member of the FATF. Its most recent mutual evaluation can be found at: http://www.fatf-gafi.org/countries/n-r/netherlandskingdomof/documents/ fur-netherlands-2014.html
Enforcement and implementation issues and comments:
The Government of the Netherlands continues to correct noted deficiencies and to make progress in improving its AML/CFT regime.
The Netherlands utilizes an “unusual transaction” reporting system. Designated entities are required to file unusual transaction reports (UTRs) with the financial intelligence unit (FIU) on any transaction that appears “unusual” (applying a broader standard than “suspicious”), or when there is reason to believe a transaction is connected with money laundering or terrorism financing. The FIU analyzes UTRs and forwards them to law enforcement for criminal investigation. Once the FIU forwards the report, the report is then classified as a STR. There were 202,164 UTRs filed in 2013.
After consideration, the Netherlands has decided not to require all covered entities to report all transactions in currency above a fixed threshold but, instead, limits reporting to certain defined transactions and sectors. Based on previous experience, and particularly a EUR 15,000 threshold for car dealers which prompted too many UTRs, it was decided to establish thresholds targeted to specific risks and products.
The FIU is an independent, autonomous entity under the National Police Unit. It is expected that the National Police’s 2013 reorganization, scheduled for completion in 2016, will enhance law enforcement flexibility and effectiveness in responding to money laundering cases. A newly established Anti-Money Laundering Center combines expertise from government agencies, such as the FIU, the National Police, and the Food Authority; knowledge institutions; private sector partners; and international organizations.
On November 18, 2014, Parliament passed legislation that raises the maximum penalty for certain financial-economic crimes. The law will raise the maximum prison sentence for money laundering from four to six years, and will broaden the scope of corruption to include bribery of financial service providers.