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

  • 24 Aug 2022

    The Netherlands' measures to combat money laundering and terrorist financing 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.

  • 14 Feb 2014

    Outcomes from the meeting of the FATF Plenary, Paris 12-14 February 2014 The FATF Plenary updated its statements identifying high-risk and non-cooperative jurisdictions. The Plenary adopted the follow-up reports to the mutual evaluations of Aruba Kingdom of the Netherlands, Austria, Canada, Luxembourg, Mexico and the Netherlands and reviewed the voluntary tax compliance programmes in several jurisdictions.

  • 14 Feb 2014

    Mutual Evaluation of the Netherlands: 2nd Follow-up Report This follow-up report provides an overview of the main changes made to the AML/CFT system in the Netherlands since the adoption of its mutual evaluation report in February 2011. In February 2014, the FATF recognised that the Netherlands had made significant progress in addressing deficiencies identified in its mutual evaluation report and decided that the country should be removed from the regular follow-up process.

  • 25 Jun 2011

    Outcomes of the FATF Plenary meeting, Amsterdam, 23-25 June 2010 The Chairman's summary provides an overview of the major outcomes of the Plenary, during which India became a full member of the FATF and the mutual evaluations of the Kingdom of Saudi Arabia, India and Brazil were approved.

  • 25 Feb 2011

    Mutual Evaluation Report of the Netherlands The FATF has completed and adopted the third mutual evaluation of the AML/CFT system in the Netherlands. The AML/CFT system of the Netherlands is largely in line with the FATF requirements but some shortcomings in the legal framework and the implementation of already existing measures need to be addressed. The evaluation was conducted by the International Monetary Fund and adopted by the FATF.

  • 25 Feb 2011

    Outcomes of the FATF Plenary meeting, Paris, 23-25 February 2011 The Chairman's summary provides an overview of the major outcomes of the meeting of the FATF Plenary, during which the mutual evaluations of France and the Netherlands were approved.

  • 22 Oct 2010

    Outcomes of the FATF Plenary meeting, Paris, 20-22 October 2010 The Chairman's summary provides an overview of the major outcomes of the meeting of the FATF Plenary, during which the mutual evaluation of Argentina was approved, as well as follow-up reports of the Kingdom of Denmark, Spain and Sweden. The FATF Plenary also provided an update on AML/CFT improvements in Qatar and Azerbaijan

  • 3 Jul 1995

    FATF Annual Report 1994-1995 The sixth FATF Plenary year was chaired by the Netherlands. During this Plenary year, the FATF completed the first round of mutual evaluations of the anti-money laundering measures taken by its members.
Head of Delegation

Useful links

Lead Ministry/Authority in the FATF Delegation

Ministry of Finance

 

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