Netherlands strengthens oversight on shell companies and UBO transparency

The Dutch government is working to strengthen transparency regarding ownership structures and ultimate beneficial owners (UBOs) to combat corruption and money laundering. In response to concerns regarding shell companies, the cabinet is preparing to implement new European anti-money laundering rules. These measures include stricter requirements for domiciliary service providers and a registration mandate. While the cabinet noted that fiscal measures have already reduced income flows from the Netherlands to low-tax jurisdictions from €37 billion in 2019 to €6.5 billion in 2024, further legislation is expected to be submitted to the House of Representatives by the end of 2026.

Simultaneously, the foundation Privacy First has raised alarms regarding proposals from the European Anti-Money Laundering Authority (AMLA). The organization warns that AMLA’s draft guidelines for continuous customer monitoring by banks and other entities could create a ‘financial surveillance state.’ Privacy First argues that such preventive monitoring violates fundamental rights protected under European law, including the GDPR, and could lead to the constant surveillance of law-abiding citizens through private institutions.