THE NETHERLANDS SCORES WELL IN THE FATF REPORT ON THE ANTI-MONEY LAUNDERING AND TERRORIST FINANCING

25/08/2022

Keywords: FATF, anti-money laundering (AML), counter terrorist financing (CTF), evaluation report, actions, technical deficiencies.

 

The Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CTF) standard.

 

The mutual evaluation report of August 2022

On 24th of August 2022, the mutual evaluation report on the Netherlands has been published by FATF. According to FATF the Netherlands’ measures to combat money laundering and terrorist financing are delivering good results.

 

The Netherlands scores well in an international evaluation of the approach to money laundering and terrorist financing.

This report indicates that the Netherlands has made great progress in recent years in its approach to money laundering and terrorist financing. The Financial Task Force describes the Dutch approach to money laundering as a robust system and regards domestic cooperation and coordination at both policy and operational levels as core qualities. The Netherlands is a frontrunner in its collaboration with private parties and the non-profit sector. The international cooperation and the intensive and innovative use of data and financial intelligence in criminal investigations are also positive points.

 

The following points have been presented as action points for the Netherlands by FATF

Besides postive points, there are also various points where the Netherlands has to make improvements to combat money laundering and terrorist financing.

 

The following points of actions are proposed by FATF:

• According to the report of FATF the Netherlands pursues confiscation of criminal assets as a strategic priority, but has to take more actions to prevent legal persons from being used for criminal purposes and to ensure there is access to adequate, accurate and current beneficial ownership information.
• The Netherlands’ main money laundering risks are related to fraud and drug related offences, which represent 90% of all Dutch proceeds of crime. The Netherlands has a good understanding of the risks it faces and has developed robust risk-based policies and strategies to address them, but some outstanding technical deficiencies such as the regulation of virtual asset service providers are needed.
• FATF also proposes institutions that fall under the Money Laundering and Terrorist Financing Act (the Wwft), such as banks, investment institutions, investment firms, civil-law notaries and lawyers take more actions in order to determine who the ultimate beneficiaries (the UBO) are and to report asset freezes due to international sanctions.

In the Autumn, the Dutch government will provide the House of Representatives with a response to the findings and recommendations of the FATF.

 

In case of questions, please feel free to contact NAZALI nazali_amsterdam@nazali.com).

 

References:

https://www.rijksoverheid.nl/actueel/nieuws/2022/08/24/fatf-beoordeelt-nederland-positief-in-evaluatie-aanpak-witwassen

https://www.rijksoverheid.nl/documenten/kamerstukken/2022/08/24/aanbiedingsbrief-evaluatierapport-financial-action-task-force-over-nederland

https://www.fatf-gafi.org/media/fatf/documents/reports/mer4/Mutual-Evaluation-Report-Netherlands-2022.pdf

 

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