Finance Minister Eelco Heinen has proposed that banks be allowed to share customer information to strengthen anti-money laundering efforts, despite concerns over privacy. In a discussion document presented to parliament on Monday, Heinen outlined his vision for the financial sector, focusing on combating financial crime, reducing bureaucracy, and fostering competition in the savings market.
Tackling Money Laundering
Current laws prohibit banks from sharing client data due to privacy regulations. However, Heinen argued that the existing system is both costly and inefficient. “The discussion about privacy is at odds with tracing criminal money and keeping the financial system clean,” he said.
The finance minister highlighted that around 13,000 bank employees are dedicated to detecting unusual spending patterns, at an annual cost of €1.4 billion. He noted that these stringent measures have led to certain sectors and organizations being excluded from banking services, while individuals with foreign names often face additional scrutiny.
“Six percent of entrepreneurs face challenges opening or maintaining a bank account,” Heinen said, emphasizing the need for more effective measures to combat money laundering while reducing the administrative burden on banks.
Heinen suggested that banks could potentially share blacklisted client names as part of the effort, but he stressed that any changes would require consultation with the Dutch privacy watchdog, AP.
Reforming the Savings Market
Heinen also addressed public dissatisfaction with banks, including criticisms of profits, low interest rates on savings, and the cost of bank accounts. He reiterated his stance that banks must better inform clients about optimizing their savings.
The minister warned that if banks fail to improve transparency and customer benefits by the end of the year, he may introduce legislation to prohibit banks from linking savings accounts to current accounts.
Balancing Privacy and Regulation
While acknowledging the tension between privacy, anti-money laundering efforts, and regulatory burdens, Heinen emphasized that maintaining the integrity of the financial system is his top priority. “The conversation around privacy should shift from what isn’t allowed to what can be made possible,” he said, hinting at potential legislative changes to enable greater data sharing among financial institutions.
Heinen’s proposals aim to streamline financial operations and ensure a cleaner, more transparent banking system, while addressing customer concerns and fostering competition in the sector.