Implementation rules should limit drawbacks of anti-money laundering rules

Financial privacy

Privacy First has found in recent years that citizens' financial privacy is slowly but surely being eroded and that the risks of identity fraud, misuse of financial personal data and discrimination are increasing as a result of the violation of basic data protection and privacy principles. Privacy First therefore has financial privacy as one of its focus areas: https://privacyfirst.nl/thema/financieel/.

 

AML/CFT: good intentions leading to discrimination and other forms of harm

The European legislator has good intentions in combating crime and criminal financial flows under the banner of combating money laundering and terrorist financing by private companies (the European AML/CFT system), but employs methods that are disproportionate and expose innocent citizens to unnecessary risks to their data and security.  

In the Netherlands, it has become clear in recent years that the AML/CFT system created by the EU leads to great harm to citizens. In a letter dated May 14, the Dutch Finance Minister acknowledged that the fight against money laundering and terrorist financing has led to discrimination and exclusion on a large scale. Denial of this issue was no longer possible after the publication of a report by KPMG commissioned by the Ministry of Finance and the scathing verdict of the Human Rights Board. Dutch media previously paid extensive attention to discriminatory practices by financial institutions.  

The problems caused by the AML/CFT system do not only affect ethnic minorities and vulnerable groups. All other people and organizations can also face inappropriate inquiries from money laundering firms. From a article of the Home Owners Association in January 2025, it became clear that it is hardly possible for owners' associations (VvEs) to open a bank account anymore, apparently because they are considered a high money laundering risk by banks. This is completely unjustified, as CoEs are not a high crime risk. Several other types of organizations, including many non-profit organizations, are experiencing major problems due to the AML/CFT rules and have asked the Dutch government many times to act and ensure that bona fide citizens and organizations are not harassed by anti-money laundering entities, see e.g. this letter of nonprofit organizations.

 

Consultation response Privacy First

The serious problems facing people and organizations in the Netherlands and elsewhere in the EU are a result of the European AML/CFT system. Privacy First urges the EBA, the European Anti-Money Laundering Authority (Anti-Money Laundering Authority, AMLA) and the European Commission to use implementation rules based on the Anti-Money Laundering Regulation (AMLR) to mitigate the problematic effects of the AML/CFT system and counter new discriminatory practices. Read our full consultation response here (pdf).