For a number of years now, De Nederlandsche Bank has regarded real estate as one of the principal foci within its integrity supervision, holding that, by their very nature, commercial real estate operations involve a higher risk of fraud and money laundering. This is ascribed to such factors as the relatively high value of real estate, the frequent lack of transparency regarding pricing and the complexity of transactions.
In addition to soundness, integrity is a precondition for a stable financial market. Hence, it is important that institutions should recognise and control integrity risks. Integrity risks such as the risk of money laundering and the risk of fraud pose grave dangers to the proper operation of the financial system and thus to the economy in a broader sense.
The present Policy Rule relates to institutions’ integrity policy regarding commercial real estate operations. The various rules contained in the Financial Supervision Act (Wet op het financieel toezicht), the Pension Act (Pensioenwet) and the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme) regarding the integrity of operations are mostly principle-based. The measures taken to control integrity risks must be in line with the gravity and the magnitude of the risk concerned.
The Policy Rule does not seek to limit the principle-based nature of the legislation concerned. It seeks to ensure that institutions engaging in commercial real estate operations take adequate control measures geared to their situation on the basis of the specific integrity risks inherent in these operations.
The Policy Rule does not seek to set new standards or rules, but provides guidelines permitting compliance with the existing rules. The Explanatory Notes to the Policy Rule centre especially on measures regarding customer due diligence and customer acceptance. It is stressed that this does not mitigate all integrity risks attending real estate operations. Regarding such matters as the control of the risk of conflicts of interest, additional measures are required.
On 31 May 2023, DNB announced an increase of the countercyclical capital buffer (CCyB) to 2%. Banks with loans outstanding in the Netherlands must comply with this requirement since 31 May 2024. DNB is required to determine the height of the CCyB on a quarterly basis.
Read more DNB maintains Countercyclical Capital Buffer at 2% – December 2024
Dutch mortgage funds received €2 billion in new investments from institutional investors such as pension funds and insurers in the first three quarters of 2024, DNB figures show. This is less than in previous years and can be attributed to market interest rates having risen sharply during 2022.
Read more Investor interest in Dutch mortgage funds continues to decline
DNB has reviewed the identification and buffer requirements for systemically important banks and maintains the current requirements.
Read more DNB maintains buffers for systemically important banks
On 22 October 2024, De Nederlandsche Bank (DNB) imposed an administrative fine of €2,250,000 on Bybit Fintech Limited (Bybit). The fine was imposed because Bybit provided crypto services in the Netherlands without the legally required registration with DNB, which is against the law.
Read more Fine for Bybit Fintech Limited for offering crypto services in the Netherlands without the legally required registration until September 2023
