DNB shares its supervisory priorities for the next four years

Annemarie MullerAML (Anti-Money Laundering)

Development. That’s one of ComplianceWise’s core values. This extends beyond the development of our own products, we’re also focused on market developments. Making sure to stay on top of every change that could affect our clients. This is why we’re keen to share the latest reports from the DNB (Dutch Central Bank), keeping everyone up to date and aware of any development that might impact their business.

In this post we have provided an overview of DNB’s recently published priorities for the coming years – important information for all of our clients operating within the Dutch market.


Background to the report

Although the financial crisis now seems firmly in the past, it demonstrated that both financial institutions and the supervisor must always remain alert to new risks. And while the crisis of 2007 is behind us, the financial sector is now facing various technological, economical, and social challenges – all of which will impact supervision.

In order to meet these challenges, DNB has identified three priority themes for the coming years;

  1. respond to technological innovation;
  2. stimulate sustainable prosperity, and;
  3. a hard stance against combating financial and economic crime.


Technological innovation

As technological opportunities increase rapidly, digital transformation seems to be unavoidable. DNB wants to make the most of the opportunities that technological innovation offers, ensuring a diverse and competitive financial sector is guaranteed and improved services are created. For their part, DNB will perform data-driven supervision, experimenting with new techniques and data resources.

Proper data-driven supervision demands that high quality data is provided by institutions. Regulatory technology (“RegTech”) can help institutions to report more efficiently, while maintaining the quality of data.

While digitization brings many advantages, it has also meant that the vulnerability of the sector for cyberattacks has increased, making it crucial to have continued focus on cybersecurity. In order to contribute to the overall safety of the sector, DNB will be undertaking its own research and investigation into cybersecurity.


Stimulate sustainable prosperity

DNB wants to ensure that the sector is populated with sound and ethical financial institutions, all of which should contribute to a stable financial system and sustainable prosperity. To achieve this, DNB will analyze the impact of potential sustainability risks and will include these in its supervision process. Any hurdles which may prevent financial institutions to put sustainable policies in place will be identified, and – if possible – eliminated. Sustainability will also be further embedded in DNB’s (international) policy.

De Nederlandsche Bank


Combating financial and economic crime

Combating financial and economic crime maintains a key positon on the DNB’s agenda, especially while financial institutions are still failing in their role as gatekeepers.

On the other hand, it’s also undesirable to choose mechanical application of legal requirements over acting with integrity, possibly resulting in socially unacceptable behavior. To illustrate this point DNB, unsurprisingly, mentions the ‘Paradise’ and ‘Panama’ Papers. Both examples of where some financial institutions were involved in ‘aggressive financial constructions’, while not necessarily acting ‘illegally’.

In short, financial institutions should take ownership of their role as gatekeeper, implementing robust lines of defense, with final responsibility landing with the board of directors. With it’s tough focus on this area, DNB aims to be a leader in combating financial and economic crime.


Continuing strict supervision of the trust sector

Within the ‘Supervision Outlook for 2018’ you can see all the topics highlighted in specific sectors, among others, the trust sector.

The trust sector should be preparing for the introduction of a new legal framework, the Act on the Supervision of Trust Offices 2018 (Wtt 2018). DNB expects that Trust offices that cannot comply with the stricter requirements will gradually disappear from the scene –  either through enforcement or on their own initiative.

Go to DNB’s press release to read the entire publication.


Annemarie Muller

Annemarie Muller

Director Client Relations at ComplianceWise
ComplianceWise’s CW360 can help you easily take control of your AML and compliance obligations, from KYC to transaction monitoring and cashflow management. Not only do we help to reduce the risk of non-compliance costs, but our solution also offers an opportunity to gain valuable business insights that can be used to inform management decisions and support strategic planning.
Annemarie Muller

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