Netherlands: Minister Proposes Legislation To Facilitate Fight Against Financial And Economic Crime

On 15 May 2012, the Minister of Security and Justice has published a draft bill for advice that would extend existing measures to combat financial and economic crime. The draft bill has also been submitted for advice to the Council for the Judiciary and the Public Prosecution Service. Their advice may lead to amendment of the draft bill. It is as yet unknown when the bill will be submitted to the Second Chamber of parliament.

The draft bill includes the following important changes:

• The maximum sentences for the various types of money laundering are increased.
• The maximum term of imprisonment for economic offenders who systematically violate the law is increased to four years.
• Increased fines for enterprises that commit financial and economic offences. Under the draft bill, the courts can impose maximum fines of up to 10% of annual turnover instead of the current category-6 fine (EUR 780,000).
• Misuse of community funds becomes a specific criminal offence.
• Corrupt government employees may receive maximum prison terms of six years if they accept favours on account of their position.
• A faster procedure is introduced where, in the course of a criminal investigation, the police and public prosecutor seek access to information that is subject to lawyer-client privilege. Under the current rules, documents containing this type of information are sealed while the district court considers any objections by the lawyer in question against seizure of the documents. The decision of the district court is open to Supreme Court appeal. The draft bill provides that the examining judge may inspect the documents that have been seized and assess if continued confidentiality is justified given the wider public interest involved. The lawyer may then dispute the decision of the examining judge in expedited proceedings before the district court. Supreme Court appeal against the district court's ruling would no longer be available.

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