DNB issued an instruction to trust office BK in 2019

Gatekeeper

Tackling money laundering is a priority for the government because it is key to effectively fighting all manner of serious crime. The Act on the Supervision of Trust Offices (Wet toezicht trustkantoren 2018 – Wtt) aims to reduce integrity risks in trust services. There is a risk that trust services could be misused for money laundering, terrorist financing or other socially improper behavior. Pursuant to this act, trust offices act as gatekeepers and are required to design their business operations so that they can effectively identify and manage integrity risks. This implies that trust offices must make efforts to recognize potential misuse of their services both prior to providing services and in the course of provision of services. They must possess detailed knowledge of their customers, the object companies to be served and the rationale for their services.

Non-compliance

DNB examined several of BK’s customer files. The common thread that emerged is that BK did not properly carry out ongoing monitoring of the business relationships and its customers at the time. Furthermore, BK’s system for identifying unusual or suspicious customers and transactions had been inadequately set up. This meant that BK the risk that it could have given malicious persons, such as narcotics dealers, fraudsters and terrorists, access to its services. Similarly, BK failed to report unusual transactions to the authorities (Financial Intelligence Unit) in a timely manner, meaning investigative agencies may have missed signals in their fight against subversive crime.

Instruction

An instruction is an enforcement measure in which we order the institution to perform one or more prescribed actions aimed at terminating or redressing its non-compliance. We found that this approach, which focuses on compliance with the law, was the most appropriate to compel BK to end its non-compliance. We are satisfied with this measure because BK complied with the instruction in full. BK has since redesigned both its group structure as well as its services. It has also limited its risk appetite under new management.

Objection, appeal and further appeal

BK lodged an objection to the instruction. On 20 December 2019, DNB declared the objection unfounded. BK subsequently filed an appeal, which the Rotterdam District Court partially upheld on 17 June 2021. The court also ruled that DNB had made reasonable use of its power to issue an instruction. BK subsequently filed a further appeal. on 6 February 2024, the Trade and Industry Appeals Tribunal upheld the ruling of the Rotterdam District Court. Due to this the instruction, the decision to implement a change and the decision on the objection became irrevocable. Now that these decisions are irrevocable, DNB is entitled to full disclosure.

See below for the instruction, the decision to implement a change and the decision on the objection, excluding confidential information. For further information, please contact DNB’s Information Desk at telephone number 0800 - 020 1068 (free of charge in the Netherlands) or +31 20 524 9111 (if calling from abroad).