Netherlands

Member since 1990

In 2022, the FATF assessed the effectiveness of The Netherlands' measures to combat money laundering and terrorist financing, and their compliance with the FATF Recommendations. 

The report concluded that The Netherlands has made notable improvements to its anti-money laundering (AML) and counter-terrorist financing (CFT) framework in recent years. Technical compliance with the FATF Standards is strong, although there are some outstanding deficiencies including in relation to the regulation of Virtual Asset Service Providers.

A key strength of the Dutch AML/CFT system lies in its robust system of domestic co-operation and co-ordination at both policy and operation levels. Other strong aspects of the regime include the use of data in investigations and in the development of financial intelligence. The Netherlands makes it a strategic priority to confiscate criminal assets, and also proactively engages with the non-profit sector to avoid their abuse for terrorist financing and prevent de-risking. However, various improvements should be made to prevent legal persons from being used for criminal purposes and to ensure that there is access to adequate, accurate and current beneficial ownership information. Other improvements include strengthening risk-based supervision and allocating adequate resources to tackling unlicensed activities.

The Netherlands will report to the FATF on the steps it has taken to address the deficiencies identified in the mutual evaluation. However, this follow-up process does not focus on effectiveness. The effectiveness of The Netherlands' actions to combat money laundering and terrorist financing will be assessed in the 5th round of mutual evaluations. 

The Netherlands' measures to combat money laundering and terrorist financing

24 Aug 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.
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NetherlandSimage

Ratings

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Netherlands - Mutual Evaluation 2022

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
C
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
PC
R.14 - Money or value transfer services
C
R.15 - New technologies
PC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
LC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
LC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
C
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Netherlands - Mutual Evaluation 2022

IO1
SE
IO2
HE
IO3
ME
IO4
ME
IO5
ME
IO6
HE
IO7
SE
IO8
SE
IO9
SE
IO10
SE
IO11
ME

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

Related publications

Head of Delegation

Useful links

Lead Ministry/Authority in the FATF Delegation

Ministry of Finance

 

Co-operating and Supporting Nations (COSUNs) of