Anti Money Laundering (AML) in The Netherlands |
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| Money laundering in the Netherlands is a substantial problem. The Netherlands has put forth a strong effort to improve it Anti Money Laundering (AML) system. In 1994, the Government of the Netherlands (GON) criminalized money laundering related to all crimes. In December 2001, legislation was enacted making facilitating, encouraging, or engaging in money laundering a separate criminal offense, easing the public prosecutor’s burden of proof regarding the criminal origins of proceeds. Under the law, the public prosecutor needs only to prove that the proceeds "apparently" originated from a crime; self-laundering is also covered. In two cases in 2004 and 2005, the Dutch Supreme Court confirmed the wide application of the money laundering offenses by stating that the public prosecutor does not need to prove the exact origin of laundered proceeds and that the general criminal origin as well as the knowledge of the perpetrator may be deducted from objective circumstances.
The Netherlands has comprehensive Anti Money Laundering (AML) legislation. The Services Identification Act and the Disclosure Act set forth identification and reporting requirements. All financial institutions in the Netherlands, including banks, bureaux de change, casinos, life insurance companies, securities firms, stock brokers, and credit card companies, are required to report cash transactions over 15,000 Euros, as well as any less substantial transaction that appears unusual ( a broader standard than "suspicious" transactions) to the Office for Disclosure of Unusual Transactions (MOT), the Netherlands’ Financial Intelligence Unit (FIU). In December 2001, the reporting requirements were expanded to include trust companies, financing companies, and commercial dealers of high-value goods. In June 2003, notaries, lawyers, real estate agents/intermediaries, accountants, business economic consultants, independent legal advisers, trust companies and other providers of trust related services, and tax advisors were added. Reporting entities that fail to file reports with the MOT may be fined 11,250 Euros, or be imprisoned for up to two years. Under the Services Identification Act, all those that are subject to reporting obligations must identify their clients, including the identity of ultimate beneficial owners, either at the time of the transaction or prior to the transaction, before providing financial services. The Economy of the NetherlandsThe Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, fairly low unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. The Netherlands is the 16th largest economy of the world. Banking in the NetherlandsThe Central Bank of the Netherlands is the central bank, it is part of the European System of Central Banks, and one of the regulators of the financial sector in the Netherlands. The other regulatory body is the Netherlands Authority for the Financial Markets. Currency of the NetherlandsThe currency in the Netherlands is the Euro, which serves as the currency of the 15 members of the European Central Bank. The states that have adopted the Euro as its currency make up the Eurozone. These countries are: Austria, Belgium, Cyprus, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. The Euro is the single currency for more than 320 million Europeans. The Euro was first phased into the global economy in 19999. In the beginning, participating countries had to combat the use of both Euros and former national currencies. Beginning in 2002, national currencies were withdrawn. The Euro comes in both banknotes and coins. Banknotes are available in 5, 10, 20, 50, 100, 200 and 500 denominations. Coins are available in 1, 2, 5, 10, 20, 50 cent pieces, and 1 and 2 Euro coins. Other Key Statistic of the NetherlandsTime Zone: UTC+1 (6 hours ahead of Washington, DC during Standard Time) Daylight SavingTime: +1hr, begins last Sunday in March; ends last Sunday in October. Location: Western Europe, bordering the North Sea, between Belgium and Germany. Population: 16,967,933 (June 2015 est.) Labor Force: Approximately 3% work in agriculture, 21% in industry and 76% in services industries. The unemployment rate is 3.2%. Languages Spoken: Dutch (official), Frisian (official). Trade Organizations: The Netherlands is a member of the World Trade Organization (WTO). |
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