Dutch Finance Minister Eelco Heinen has called for banks to collaborate more closely in monitoring transactions and customers for signs of money laundering. In a letter to parliament, Heinen acknowledged the concerns previously raised about privacy violations linked to such cooperative efforts but argued that the current methods used by banks to detect money laundering are ineffective and costly.
The financial sector spends approximately 1.4 billion euros annually on anti-money laundering measures. This includes the employment of 13,000 staff members, accounting for 20% of bank employees, who are solely dedicated to detecting unusual patterns in transactions. However, despite these efforts, Heinen pointed out that the stringent rules are not only inefficient but are also creating obstacles for legitimate customers. Many citizens and businesses are finding it increasingly difficult to open bank accounts, with some sectors being excluded altogether due to the extensive checks required. Heinen cited examples of intrusive interrogations and even discrimination as part of this issue.
Historically, banks attempted to jointly manage part of the money laundering checks through an initiative called Transaction Monitoring Netherlands. However, this approach faced significant opposition in parliament due to concerns about privacy breaches, and the Dutch Data Protection Authority also raised objections. Despite this, Heinen is advocating for a return to discussions about this joint approach, acknowledging that while privacy and strict anti-crime measures are both critical, it may be necessary to prioritize one over the other in certain instances.
Heinen emphasized the need to find a new balance between ensuring robust anti-money laundering measures and respecting privacy, urging parliament to collaborate in reshaping the framework for data sharing among banks.
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