Dutch banks should focus more on major money laundering threats and scale back checks on low-risk customers, finance minister Eelco Heinen has said in a briefing to parliament.

Heinen said the current anti-money laundering regime has “gone too far”, creating unnecessary problems for legitimate individuals and businesses. After several high-profile settlements between banks and prosecutors — including ING’s €775 million deal in 2018 — both regulators and banks became too cautious, he said.

“Banks need to feel confident that they are allowed to do less when the risk is low,” Heinen told MPs.

Dutch banks currently employ around 13,000 staff to monitor transactions, at an annual cost of at least €1.4 billion and the resulting bureaucracy has made it difficult for businesses, associations and charities to open accounts.

The current regime has led to some people being refused accounts, particularly those in sectors which rely on cash money, and private individuals with foreign backgrounds.

Heinen has now asked the Dutch banking sector and business groups to draw up a plan for self-regulation and wants banks to make better use of existing public registers and share data more effectively.

The Dutch banking association NVB has responded positively to Heinen’s plans and welcomes the move to allows them to do less when the risk of money laundering is low. It is also positive about moves to allow banks to exchange information more easily.

Heinen said in January he wants banks to be able to share information about their customers as part of anti-money laundering investigations, despite privacy concerns.

Banks are currently not allowed to share information about clients because of privacy. However, Heinen said the current situation is expensive and ineffective.