Gatekeepers join forces to better combat money laundering

A national government coordinator, information sharing among gatekeepers in the chain, and a mutual warning system to deter criminals. These and other proposals are made by banks, insurers, real estate agents, trust offices, notaries (gatekeepers), and entrepreneurs in the report "Joining Forces: Towards a More Effective and Efficient Fulfillment of the Gatekeeper Role in the Netherlands" to significantly improve the approach to money laundering, terrorist financing, and sanctions compliance in the Netherlands.

The report (pdf, 2.5 MB) focuses on mutual cooperation – including public-private partnerships – and addresses what gatekeepers can do themselves and where they need government support. The goal is also to ensure that legitimate clients are minimally affected by all the anti-money laundering measures and sanctions checks that gatekeepers are required to implement.
It is unique that the various so-called gatekeepers – NVB (banks), the Dutch Association of Insurers, the Royal Dutch Association of Civil-Law Notaries (KNB, notaries), Holland Quaestor (trust offices), and the NVM and VBO (real estate agents and appraisers) – have joined forces. Together with MKB-Nederland and VNO-NCW, they commissioned KPMG to investigate how they can contribute most effectively and efficiently to combating money laundering, counterterrorism (Wwft), and compliance with the Sanctions Act, based on their gatekeeper role.

Barriers in practice
In practice, gatekeepers encounter numerous bottlenecks and obstacles in carrying out their statutory duties. For example, they lack support, clear guidance, and prioritization from the government, struggle with conflicting laws and regulations, and risk being severely punished if, according to the government, they are not fulfilling their role adequately. As a result, in some situations they feel compelled to do more than necessary: applying rules-based implementation of risk-based standards or applying compliance-oriented adherence just to demonstrate that they have met all requirements.
Customers, both businesses and citizens, are increasingly affected by this: repeated, disproportionate requests for information and documentation, higher costs, longer processing times, and individuals and businesses with increased integrity risks who may face refusal or restriction of (financial) services. Think of politically exposed persons (PEPs), a retailer with more cash on hand because many tourists pay in cash, or an exporter of Dutch vehicles. Not criminal, but certainly increased risks.

Warning system and information sharing
With increased (mutual) cooperation, the use of technology, and centralized government management, we can make significant progress, according to the gatekeepers in their research report. They want to work towards a mutual warning system, similar to the one banks and insurers already use for fraud, and information sharing, so they are better able to identify and respond to risks. The gatekeepers recognize the tension between effective anti-money laundering and privacy protection. As they further develop their plans, they will discuss this with experts and the Dutch Data Protection Authority.

Streamline
The gatekeepers also want to explore the possibility of a shared system, which other countries are already experimenting with. In such a system, available data—always with the customer's consent—would be reused, updated, and enriched, eliminating the need for repeated inquiries with the customer. Streamlining the various procedures involved in accepting a customer could also increase efficiency. Currently, for example, a homebuyer must repeatedly provide the same information to all the gatekeepers in the chain—real estate agent, bank, notary—every time.

National Coordinator
Gatekeepers also advocate for a national coordinator who, from the government's perspective, takes charge of the national anti-money laundering approach. This approach is currently too fragmented and insufficiently based on actual risks. They need a supportive government that speaks with a unified voice, removes obstacles, and focuses on more structured public-private partnerships to prevent criminals from reaching their doorstep.
Gatekeepers are making tremendous efforts to combat all potential money laundering risks, but they find that the government's efforts aren't keeping pace. Stopping criminals will only be successful if the government also invests more in scrutinizing reports, actually apprehending the criminals, and reporting this back to the gatekeepers.

New cabinet
Gatekeepers are insufficiently able to perform their duties efficiently and effectively. Legitimate entrepreneurs suffer as a result, and criminals can operate virtually unhindered through underground banking. The new government has the crucial task of taking control so that gatekeepers can stop criminals without causing unnecessary inconvenience to entrepreneurs and citizens.