NETHERLANDS Trends and Developments Contributed by: Juliet de Graaf and Johannes de Jong, Osborne Clarke N.V.
the 2022 investigations into climate and envi - ronmental risks. The results indicated that the involved banks have made progress but that improvement in measuring and managing these types of risks was needed. In 2024, DNB has enhanced its supervisory methodology to more solidly incorporate sustainability risks. The pri - mary focus has been on integrating quantitative indicators to assess risk levels and improving institutions’ risk management practices. Addi - tionally, the DNB has refined their qualitative risk management indicators using insights from their 2023 baseline assessment. In 2025, we expect that the DNB will actively enter into discussion with banks regarding ESG compliance and we expect enforcement measures in case of non- compliance. AML and Sanction Regulations 2024 will go down as yet another year of height - ened AML and sanction regulation compliance enforcement by the DNB. A fair number of Dutch-licensed banks have either completed or have been summoned by the DNB to update their Systematic Integrity Risk Analysis (SIRA) following a binding instruction from the DNB. The DNB requires Dutch-licensed banks to work on the basis of guided procedures to manage their integrity risks. Banks are expected to follow strict DNB guidelines to ensure a comprehensive and systematic approach to identifying, analys - ing, and managing integrity risks within the bank. There are no signs of the DNB slowing down this approach. With fines in the hundreds of millions already dating back to 2018, further AML and sanction regulation fines are expected next year for a number of Dutch-licensed banks. The DNB has identified a recurring issue among some Dutch-licensed banks – shortcomings in their risk assessments. These deficiencies lead to a lack of clear visibility into the banks’ exposure to
potential risks associated with money laundering and terrorist financing. This all fits the pattern of earlier AML and sanction regulation enforcement cases as well as a number of non-public investi - gations that are currently ongoing. Notably, in 2023 at least one Dutch retail bank successfully challenged the DNB for alleged failures in meeting anti-money laundering con - trols. In a pivotal legal confrontation between the DNB and online bank Bunq, the Rotterdam court markedly slashed an administrative fine imposed by the DNB by 85%. This followed Bunq’s prior legal victory that is being perceived by the mar - ket as having significantly influenced the Dutch financial sector’s move towards a risk-based, technology-driven approach in monitoring cus - tomers for money laundering risks. The court’s decision, reducing the fines from nearly EUR900,000 to about EUR128,250, rep - resented a response to Bunq’s challenge against the DNB’s allegations of inadequate monitoring of ownership structures in foundations and char - ities, insufficient scrutiny of politically exposed persons, and failure in continuous customer monitoring. This case stands out in the Dutch banking sector, not just for the substantial fine reduction but also as a rare instance of a bank contesting the regulator’s decision, reflecting an evolving dynamic in regulatory compliance and AML and sanction regulation practices. In a move that could be connected to Bunq’s legal victory, the DNB subsequently launched a public proposal in October 2023, titled “A new anti-money laundering approach for financial institutions and other stakeholders as part of a public consultation”. This proposal advocates for a more risk-based approach, more effective crime-fighting capabilities, and the prevention of overly stringent controls that may unnecessar -
424 CHAMBERS.COM
Powered by FlippingBook