Data protection officer continues to criticize new money laundering law

The Dutch Data Protection Authority (AP) continues to criticize a new anti-money laundering law that the cabinet wants to enforce even after some adjustments. This law aims to make it easier for banks to recognize unusual transaction patterns and make money laundering significantly more difficult.

The idea is that this law gives banks the ability to monitor transactions in bulk. This applies to business transactions as well as private transactions.

The AP had previously criticized the law. The draft law was later revised, but even after the adjustments, the data protection authority remains “particularly critical”. This is in a memorandum that will be discussed at a meeting with members of the House of Representatives on Thursday.

“violation of fundamental rights”

The AP says major objections still apply. “We see a form of mass surveillance that can lead to marginalization (people become unbanked) and risks of discrimination,” the agency writes. The Council of State also warned of the risk of discrimination.

The AP believes that the cabinet should recognize that the introduction of this law is a path to “full centralized control of the payment system”, calling it undesirable. This would be an “unlawful interference with fundamental rights and civil liberties”.

Additional Warranties

The Government believed it could adequately address the objections raised by the Council of State and the EP by including a number of additional safeguards. For example, there will be a limit of 100 euros for special payments, below this amount the law does not apply. The effectiveness of the new approach will also be reviewed after four years and adjusted if necessary.

AP therefore remains critical. There are also many questions about the plans in the House of Representatives. Opposition parties say the plans have gone too far and the cabinet has gone too far with what they call the “troll law”. There are also many questions about the 100 euro limit and why this amount was chosen.

Thursday’s roundtable will be followed by a discussion where lawmakers can question experts. Next year, it should become clear what the final plans will look like.

Source: NOS