The cabinet should look again at its plans to extend the law covering entrepreneurs with criminal connections, the Council of State has said.
The court, which examines legislation for potential problems, said the plan to extend the controversial Bibob laws could fall foul of European human rights legislation.
The law currently allows local councils to refuse licences to certain business sectors – such as construction, gambling and brothels – if the owner is thought to have criminal connections.
According to the NRC, the court believes local authorities have other means at their disposal to refuse licences to companies which could be a front for criminal activities. It is also concerned about setting up a national register of companies which have been refused permits.
In Amsterdam, popular jazz café The Cotton Club lost its licence because the owner borrowed money from a known criminal who happened to be a close relation.
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