Dutch Finance Minister Calls for Overhaul of Anti-Money Laundering Regulations

Dutch Finance Minister Eelco Heinen has urged a comprehensive reform of anti-money laundering (AML) regulations, arguing that the current system is excessively bureaucratic and imposes unsustainable costs on banks. According to Heinen, compliance requirements cost Dutch banks €1.4 billion annually and have led to inefficiencies that are stifling entrepreneurship. He highlighted that approximately 13,000 bank employees—around one in five workers in the sector—are now dedicated to compliance roles.

“We know of examples of impertinent interrogations, obstacles to access to payment transactions, and even discrimination,” Heinen wrote in a letter to the Dutch parliament. “We are getting to the point where the red tape is starting to get out of hand,” he warned, adding that the current system has “come to a standstill.”

As part of his reform proposal, Heinen suggested allowing banks to share customer data for AML purposes, a practice currently restricted by privacy laws. He criticized the existing framework as both expensive and ineffective. A previous initiative, Transaction Monitoring Netherlands (TMNL), which was launched by five major Dutch banks to facilitate information sharing, was discontinued last year due to conflicts with EU regulations.

“Being strict on criminals, not restricting privacy, and less regulatory pressure: we can’t do it all at once. We have to dare to choose,” Heinen stated.

The Dutch Banking Association (NVB) backed Heinen’s concerns, stressing the need for a more efficient AML strategy. “We made a number of proposals last year to ensure we become more effective in thwarting criminals while troubling well-meaning citizens less often,” the NVB said in response.

Heinen’s call for reform underscores growing concerns within the financial sector about the balance between stringent AML enforcement and the operational burden placed on banks. His proposals, if implemented, could mark a significant shift in how the Netherlands approaches financial crime prevention while addressing privacy concerns and regulatory efficiency.

By fLEXI tEAM