It should be easier for sex workers to open business accounts. This is the result of a series of roundtable discussions between sex workers, banks, representatives of the Dutch Banking Association (NVB) and regulator De Nederlandsche Bank (DNB).
Although sex work has been liberalized in the Netherlands since 2000, it was almost impossible for this group to use a bank. Good accounting, registration with the Chamber of Commerce and income tax return should now be enough to get a business account.
“This is a huge recognition for the industry,” says Irina Hornstra of the Sex Work Alliance Destigmatization. “Now we are finally treated as entrepreneurs and can do business normally.” NVB anti-money laundering expert Helène Erftemeijer also describes this as an important step: “Without a bank account, you cannot properly participate in social life.”
Sex workers mostly work as self-employed individuals. Previous research by the KRO-NRCV program Pointer showed that sex workers could not get a mortgage or business account from almost any Dutch bank.
Because human trafficking and exploitation is “the predicate crime of money laundering”. “These are crimes used to make money that needs to be laundered,” explains Erftemeijer. Banks were reluctant to enter industries where the risk of trafficking and exploitation was higher, such as sex work.
Strict regulations to combat money laundering have made banks even stricter due to the amount of cash circulating in the industry. Banks cannot clearly see where this money is coming from. Since the enactment of the Money Laundering and Terrorism Financing (Prevention) Act (Wwft), the supervisor DNB has been closely monitoring banks for their watchdog functions. If they do so improperly, they face fines running into (hundreds of) millions. This happened, for example, at ING, Rabobank and ABN Amro.
“This problem has actually been going on for decades,” Hornstra says. “The lifting of the brothel ban in 2000 was supposed to improve the situation for sex workers, but when it came to banks it was a constant ‘no’.”
According to Hornstra, the industry is not well known in the banking world and there is also a lot of bias. “Even the word ‘gender’ in your company or organization’s name can result in bank account rejection.” Hornstra currently works as a sex worker and previously worked as a consultant to bond traders on Wall Street. Therefore, he says that he speaks the language of bankers and plays an important role in this process.
NVB’s Erftemeijer admits that there is a threshold. “There was a lot of ignorance on our part. We actually got off our cold feet by sitting with each other and the manager.”
Announced
Hornstra was able to explain to banks why there was so much cash in the industry (due to confidentiality), what the job profiles of sex workers were, and the issues surrounding human trafficking and exploitation.
Solutions to human trafficking problems were also found. Hornstra: “Banks were afraid they would have to control this because of their watchdog function.” Now it is clearly stated that banks are not responsible for this, but they are responsible if there are very clear signals. Now banks also know which charities they own.”
Wendy and Eve explain what this result means to them:
Hornstra now focuses on training in banks. “Practice is important.” A tour of banks shows it’s too early to tell what they’ll do, but reactions are generally positive.
ABN Amro will hold meetings with the industry to better inform employees. “We looked at the risks a lot, the regulator mainly looked at whether banks met the requirements. “We are pleased that DNB has agreed to this.”
ING says real risks can be better focused on. “Instead of spending too much time on official checks and administrative work.” De Volksbank welcomes this development.
Relevant parties will make an evaluation within six months. Hornstra believes it is a shame that undocumented immigrant sex workers are still left out. “The more normalized sex work becomes, the safer it becomes.”
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
