The Dutch Central Bank (De Nederlandsche Bank, DNB) has announced that it will be starting an investigation into the effectiveness of the sanctions screening tools of banks and payment institutions.

Given the global developments around sanctions, and in addition to DNB’s on-going investigation into compliance with Dutch sanctions legislation (primarily focusing on the administrative organisation and internal controls of financial institutions), DNB will be carrying out a separate investigation focusing on the effectiveness of the sanction screening tools of a selection of banks and payment institutions. This investigation will entail the testing of transaction screening and the screening of the names and details of business relationships. As part of its investigation, DNB will be collaborating with an external service provider to use a data-driven analysis tool that has already been used by various institutions and foreign regulatory authorities.

The banks and payment institutions that DNB has selected for this investigation will be receiving their invitation within a few weeks, including an explanation of the details of the investigations and next steps. The investigation will start in mid-September 2022 and after its completion DNB will share specific feedback, as well as generic conclusions, with the banks and payment institutions involved.