HQ Flash | March 2024

Dear reader,

These days, it’s mainly politics that are on everybody’s minds. In the Netherlands, the formation process drags on. European Parliament elections are on their way. In the United States, presidential elections are scheduled for the fall. Important elections are also taking place elsewhere in the world. 

The outcome of all these events will play a crucial role in determining the future of a free economy, which is essential for prosperity – especially for the Netherlands with our history as a trade nation.

In my view, legislation and regulations should be practical, efficient, and effective, preferably harmonized as much as possible. This benefits the economy, including the financial sector. Holland Quaestor (HQ) plays a key role in this regard. In our 2024 policy agenda, we have presented our priorities. Improving the trust sector's image and efforts to make office operations more effective remain high on the list. In this context, I'd like to share some activities which have taken place or are scheduled.

As known, HQ contributed to the creation of the KPMG report "Krachten Gebundeld" (Forces Bundled). Recently, a round table discussion was held between members of the Dutch “Tweede Kamer” (House of Representatives) and various branches of the financial sector on achieving a more effective and efficient implementation of gatekeeper roles in combating money laundering. Topics discussed included an mutual warning system, information sharing, and better support and guidance from the government. HQ emphasized the need to work towards a more risk-based approach to anti-money laundering efforts, requiring guidance and dialogue.

Speaking of guidance, during a previous meeting at the Dutch Central Bank (DNB), HQ expressed that the trust sector would benefit from guidance and dialogue. To our satisfaction, DNB offered to organize a round table where various trust offices can engage in concrete discussions with DNB representatives about challenges and positive experiences regarding the application of various specific legal norms (the Dutch Wtt).

Since legal norms always serve as the starting point, it's also crucial for legislators to understand how things operate in a trust office. We are pleased that representatives from the Ministry of Finance have accepted our invitation for a visit to one of the trust offices, to gain insight into processes such as client acceptance procedures and continuous (transaction) monitoring. Of course, dilemmas arising from recent tightening of specific legislation for trust offices will also be discussed.

These tightening measures are partly the reason for an increasing risk of some parties evading strict Wtt supervision. I have often pointed this out. Interesting articles have appeared in the Dutch newspaper Financieele Dagblad (“Financial Times”) and on the investigation platform Follow The Money, both specifically addressing the risks of said evasion. This, in my opinion, is a positive development. The NSOC (National Cooperation against Undermining Crime), initially focusing on the trust sector in a field lab, has now shifted its attention to the same subject. We are eager to contribute to combat misconduct in this area.

In April, a debate will take place in the House of Representatives on the topic of "Combating Money Laundering and Terrorism Financing." This is noteworthy because the recent bill proposal on the Action Plan for Combating Money Laundering has been declared controversial (thus parked until a full-fledged cabinet is in place). Nevertheless, we welcome debates on this topic and have already made some suggestions, considering providing additional input to the House on this subject.

Finally, a note on European developments regarding legislation aimed at preventing money laundering and terrorism financing, known as the AML package. The (caretaker) government has been asked to assess the impact of this regulation on Dutch legislation, affecting both the ‘Law on the Prevention of Money Laundering and the Financing of Terrorism’ (Wwft) and the ‘Law on the Supervision of Trust Offices’ (Wtt). We look forward to the government's thoughts on this matter. HQ will advocate for harmonization, both within the Dutch financial sector and among European countries. Ensuring a level playing field is crucial.

We remain committed to a more efficient and effective approach to combat money laundering and trust that the aforementioned actions and activities will contribute to this goal.

We will keep you posted.

Martin Wörsdörfer,
Chair HQ