Author: Selwyn Manning

Source: European Banking Authority

The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published today the first set of final draft technical standards under the Digital Operational Resilience Act (DORA) aimed at enhancing the digital operational resilience of the EU financial sector by strengthening financial entities’ Information and Communication Technology (ICT) and third-party risk management and incident reporting frameworks.

The joint final draft technical standards include:

• Regulatory Technical Standards (RTS) on ICT risk management framework and on simplified ICT risk management framework;
• RTS on criteria for the classification of ICT-related incidents;
• RTS to specify the policy on ICT services supporting critical or important functions provided by ICT third-party service providers (TPPs); and
• Implementing Technical Standards (ITS) to establish the templates for the register of information.

RTS on ICT risk management framework and on simplified ICT risk management framework

The draft RTS on ICT risk management framework identify further elements related to ICT risk management with a view to harmonise tools, methods, processes and policies. These elements are complementary to those identified in DORA. The RTS identify the key elements that financial entities subject to the simplified regime and of lower scale, risk, size and complexity would need to have in place, setting out a simplified ICT risk management framework. The RTS ensure the ICT risk management requirements are harmonised among the different financial sectors.

RTS on criteria for the classification of ICT-related incidents

These RTS specify the criteria for the classification of major ICT-related incidents, the approach for the classification of major incidents, the materiality thresholds of each classification criterion, the criteria and materiality thresholds for determining significant cyber threats, the criteria for competent authorities to assess the relevance of incidents to competent authorities in other Member States and the details of the incidents to be shared in this regard. The RTS ensure a harmonised and simple process of classifying incident reports throughout the financial sector.

RTS on ICT TPP policy

These RTS specify parts of the governance arrangements, risk management and internal control framework that financial entities should have in place regarding the use of ICT third-party service providers. They aim to ensure financial entities remain in control of their operational risks, information security and business continuity throughout the life cycle of contractual arrangements with such ICT third-party service providers.

ITS on the register of information

Finally, the ITS set out the templates to be maintained and updated by financial entities in relation to their contractual arrangements with ICT third-party service providers. The register of information will play a crucial role in the ICT third-party risk management framework of the financial entities and will be used by competent authorities and ESAs in the context of supervising financial entities’ compliance with DORA and to designate critical ICT third-party service providers that will be subject to the DORA oversight regime.

Legal basis and Background

These final draft technical standards have been developed in accordance with Articles 15, 16(3), 18(3), 28(9) and 28(10) of DORA (Regulation (EU) 2022/2554). The public consultation on the draft technical standards took place from 19 June to 11 September 2023. The ESAs received more than 420 responses from market participants, including a joint response from ESAs’ stakeholder groups. The public consultation feedback led to specific changes to the technical standards, including ensuring simplification and streamlining of the requirements, greater proportionality and addressing sector-specific concerns.

Next steps

The final draft technical standards have been submitted to the European Commission, who will now start working on their review with the objective to adopt these first standards in the coming months.

Source: Government of the Netherlands

News item | 24-01-2024 | 17:06

People smuggling via the Mediterranean Sea

The EU sanctions target persons and entities associated with the Syrian regime who are involved in smuggling migrants. These persons and entities have created a business model that consists of offering dangerous journeys to Syrians wanting to flee the country, for payment. This enables the regime – which has largely created the Syrian refugee flows itself, by repressing its own people – to profit economically from these refugees. Businesspeople and companies, including those associated with an adviser to President Assad, organise flights from Damascus to eastern Libya. From there, the route used by the smugglers takes them to Europe via the Mediterranean Sea.

This route is part of a revenue model exploited by the Syrian regime which helps finance the ongoing violent repression of the Syrian civilian population. This is why the EU has put persons and entities involved with these practices on the sanctions list.

Iranian and Russian influence

Individuals who are part of the Syrian business elite have also been added to the sanctions list, including family members of Asma al-Assad, the president’s wife. They profit from the regime’s illegal business model and facilitate the subversive Iranian and Russian influence in Syria and the Middle East.

Targeted sanctions; the Netherlands supports the Syrian people

This sanctions package consists of targeted sanctions. It only affects the persons and entities on the sanctions list. Any European assets belonging to persons and entities on the sanctions list are frozen. Individuals and entities based in the EU are prohibited from doing business with them, and individuals on the sanctions list are subject to an EU travel ban. Therefore, the sanctions do not negatively impact support for the Syrian people, such as humanitarian aid provided by the Netherlands and the EU. By imposing targeted sanctions, the EU and its member states have issued a clear message: the Netherlands and the EU stand behind the people of Syria.

Last year, on 24 April 2023, the Netherlands imposed extra sanctions on persons and entities associated with the Syrian regime. The sanctions package focused primarily on large-scale drug trafficking carried out by the regime, repression of the people of Syria and Syria’s involvement with Russia.

Source: Government of the Netherlands

News item | 29-01-2024 | 16:59

Papiamento is an important part of the identity of residents of Bonaire The increasing pressure from other languages on the island, like Dutch, Spanish, and English, may lead to unwanted oppression of Papiamento. By signing ‘The Administrative Agreement Papiamento on Bonaire’ in March 2021, the then Minister for the Interior and Kingdom Relations, the Minister for Education, Culture and Science, the Minister for Basic and Secondary Education and Media and the State Secretary for the Interior and Kingdom Relations expressed their intention of recognising Papiamento under the European Charter for Regional or Minority Languages (hereinafter: the Charter).

The Charter is a Convention of the Council of Europe for the protection and promotion of minority languages traditionally present in the territory of a state. Previously, the Charter was only applicable to the European Netherlands. Therefore, to recognise Papiamento on Bonaire under the Charter, the scope first had to be extended to the Caribbean Netherlands. This was given parliamentary approval by the States General last December. On Monday the 22nd of January 2024, the extension to the Caribbean Netherlands came into effect at the same time as the recognition of Papiamento in Bonaire under the Charter.

A language can be recognised under two parts of the Charter. A Part II recognition is a general recognition of a language. It commits a state not to introduce barriers to the use of the language in legislation or regulations. With a Part III approval, the protection and promotion of a language in specific domains like education, culture, media, administrative traffic, administration of justice, socio-economic life, and international cooperation. Papiamento on Bonaire is recognised under Part III. 

Source: Government of the Netherlands

News item | 28-01-2024 | 10:45

Mr Van Leeuwen has decided that UNRWA will receive no Dutch funding until the investigation is concluded, not even in response to new requests because of the situation in Gaza.
 

‘These accusations are simply too serious,’ the minister said. ‘We first need to know the full results of this investigation and what further steps the United Nations will take. The Netherlands will continue providing humanitarian aid to the civilian population in Gaza through other channels.’

UNRWA is receiving €19 million from the Dutch development budget this year. This is a regular contribution which has already been paid.

Source: Government of the Netherlands

News item | 24-01-2024 | 20:30

According to State Secretary Eric van der Burg of Asylum and Migration, the majority of third-country nationals can safely return to the country of origin. “Unless they have grounds to fear violence or prosecution, in which case they can apply for asylum here. It is good that there is now clarity for this group of third-country nationals after a long period of uncertainty.”

Asylum application

Approximately 740 third-country nationals have already informed the Immigration and Nationalisation Service (IND) that they wish to continue their asylum application. This group will remain entitled to accommodation at the Central Agency for the Reception of Asylum Seekers (COA) also after 4 March. Municipalities have been requested to continue to accommodate third-country nationals with pending asylum applications until they can be transferred to the COA.

Third-country nationals who did not previously inform the IND that they wish to continue their asylum application, may submit a new asylum application to the IND if they are of the opinion that they cannot return to the country of origin because they are not safe there. They remain entitled to accommodation at the COA, but they are not permitted to work in the Netherlands for the first six months.

Departure

Third-country nationals who do not apply for asylum or whose asylum application has been rejected are required to leave the Netherlands within 28 days after 4 March. Municipalities will continue to accommodate third-country nationals during this period; the Central Government will reimburse the related costs. The remigration policy of the Repatriation and Departure Service (DT&V), which runs up to and including 4 March 2024 may assist third-country nationals in their departure.

Source: Government of the Netherlands

News item | 18-01-2024 | 13:15

In the words of Minister for Digitalisation Alexandra van Huffelen, “We wish to retain the values and prosperity of the Netherlands. According to figures from the IMF, in developed economies, up to sixty percent of jobs could be affected by AI. We are unwilling to leave the future socioeconomic security of the Netherlands exclusively in the hands of major tech companies. What is also needed is a government that has ambition and vision based on public values and our objectives: ensuring that everyone can participate in the digital era, everyone can be confident in the digital world and everyone has control over their digital life. By stating our principles now, we will maintain control in the future.”

Minister of Economic Affairs and Climate Policy Micky Adriaansens continued, “It is essential that the Netherlands does not remain stuck on the sidelines when it comes to artificial intelligence. In particular generative AI is increasingly developing into one of the most defining technologies of our time, both in everyday life, and for example for application in machines and in more efficient industrial systems. Asia and the US have taken the lead and Europe will have to catch up. Only if we also invest more in AI innovations will we be in a position to compete and to set the course for the appropriate and promising development of this technology, in both our society and our economy.

Minister for Education, Culture and Science Robbert Dijkgraaf explained, “To make full use of the opportunities offered by generative AI, we must aim for greater knowledge and more skills. The essence is to develop and to retain AI talent, to allow us to develop forms of generative AI that satisfy the standards and values of Europe. Therein lies the added value for Europe’s digital open strategic autonomy. We are also considering investments in large-scale scientific and technological infrastructure, such as supercomputers and computing power, both at national and EU level. This will enable us to remain competitive in the field of LLMs and other forms of generative AI.”

The emergence of Generative AI

AI is a system technology that will have a huge impact on every domain and every sector of our society and that will affect every field of government policy. Generative AI is a specific form of AI. For example, it can assist humans in generating text, computer code, image and audio, and has already emerged as a powerful extension to human analytical and creative capacity. Certainly since the launch of chatbot ChatGPT at the end of 2022 and the introduction of other generative AI tools such as Google Bard, Midjourney and DALL-E, the use of AI has become a part of the everyday life of many people in the Netherlands.

New Dutch government actions

The Dutch government has called upon the Social and Economic Council (SER) to map out the impact of AI on labour productivity and the quantity and quality of work. The government also intends to organise campaigns to explain to people how best to protect their data against the training of generative AI models. Furthermore, investigation is underway into the establishment of a secure and usable public national AI test facility; later this year, AINEd InnovatieLabs will be launching public-private partnerships; the use of responsible generative AI applications in specific government services is due to be started and a National AI validation team will be established to assess available AI applications for example for non-discrimination. Finally, the Dutch government will continue to seek legislative advice on the legal framework, from various watchdogs.

The development last November of the open language model GTP-NL marked the start of activities aimed at promoting the development of (open) Dutch and European large language models, in line with public values. Against this background, GPT-NL will receive funding to the tune of 13.5 million euros from the first funding round for Facilities for Applied Research (Faciliteiten Telecast Onderzoek – FTO) from the Ministry of Economic Affairs and Climate Policy. In addition, the National Growth Fund will be providing €204.5 million to the AINEd programme, for knowledge, innovation and the application of Dutch AI (systems).

Opportunities and possibilities

Generative AI will have a huge impact on the economy, society and on both central and local government. The technology offers opportunities for increased productivity and new tasks and responsibilities within organisations and in the economy as a whole. It can also make a real contribution to improving internal organisational procedures and service provision. In the field of scientific research, generative AI could contribute to the elaboration, improvement and acceleration of new research methods.

Risks and challenges

At the same time there are concerns about potential risks. For example that generative AI will have a negative impact on the way in which we are provided with information which could in turn influence our democracy and the rule of law. In addition, generative AI technology is accelerating the existing dynamism in digital markets thereby increasing the risk of abuse of market power. In both the short and longer term, generative AI could result in the disappearance of job opportunities and elsewhere there are concerns about the possibility of prejudice and selectivity which could be embedded in the systems as a consequence of the training data and model parameters employed in creating those systems. Finally, at present, the Netherlands is largely dependent on language models from non-European countries, which could negatively affect the country’s innovative position, and the long-term earning capacity of the Netherlands.

Principles behind the vision

Through its value-driven approach, the Netherlands has an opportunity to become a leader in Europe and via Europe in the world. The Dutch government has announced its ambition to establish a strong AI ecosystem in the Netherlands and the EU, that offers every opportunity for innovation based on responsible generative AI. We aim to bring this about by encouraging cooperation, for example via the Dutch AI Coalition. We are also creating the necessary conditions for the development and use of generative AI applications, while maintaining our digital open strategic autonomy. With that in mind, the Dutch government has identified four policy principles.

Generative AI in the Netherlands:

  1.  Must be developed and applied in a safe manner.
  2.  Must be developed and applied in a fair and equitable manner.
  3.  Must be at the service of human wellbeing and human autonomy.
  4.  Must contribute to sustainability and our continued prosperity.
 

From vision to action

To ensure that we are able to use and develop responsible generative AI in the Netherlands, while maintaining control over the impact of this technology, the Dutch government is presenting 6 action lines in this vision. By collaborating with all stakeholders, closely monitoring the rapid developments in the field of AI, developing appropriate legislation and regulations, expanding available knowledge and skills (among others in education), by (safely) experimenting with generative AI within government itself and by ensuring strict supervision of AI, with enforcement measures where necessary, the Netherlands can remain at the forefront of the inevitable changes in our society as a consequence of generative AI.

For more information, please contact:

Thomas van Oortmerssen, Spokesman for the Dutch Minister for Digitalisation 
Communication Department
Ministry of the Interior and Kingdom Relations Turfmarkt 147 | 2511 DP | The Hague Postbus 20011 | 2500 EA The Hague 
M 06 31019781 / E thomas.oortmerssen@minbzk.nl

Source: Government of the Netherlands

News item | 17-01-2024 | 09:30

Aukje de Vries, State Secretary for Benefits and Customs: “The drug traffickers will stop at nothing and will use every means available. That’s why we need to do everything in our power to intercept drugs. In this, we’re increasingly collaborating with businesses and with other countries. The fact that this is helping Customs to intercept even more drugs is a good thing. It hits criminals where it hurts, undermining their perverse business model. This battle deserves our continued attention and investment.”

Collaboration with Belgium

The State Secretary announced the latest drug figures in Vlissingen, together with the Belgian Minister of Finance, Vincent van Peteghem. In Belgium, drug seizures amounted to a total of 116,000 kg last year. That is also more than the previous year, when 109,000 kg was seized. Dutch and Belgian Customs are collaborating intensively in their battle against drug trafficking. The Dutch Customs diving team is active in Antwerp and the two countries are jointly collaborating with Latin America. The two Customs services are also closely cooperating on automatic image recognition in scans.

Trafficking via ports

In the ports, Customs seized more than 140 consignments of cocaine last year. This is roughly the same as the year before. The average number of kilograms in each consignment has increased. Customs also found the largest ever consignment of cocaine. This was a consignment of 8,000 kg of cocaine, shipped from Ecuador to Rotterdam via Panama. The most frequent location where drugs were found was the cooling system of containers. Customs officers also regularly discovered drugs in the cargo or concealed in the structure of the container.

In Rotterdam, Customs have begun to scan more containers. Scans have increased by 40% compared to 2022. In the ports, Customs are constantly innovating to stay a step ahead of criminals, partly through the deployment of underwater robots, smart cameras and drones. With the help of a drone, Customs recently succeeded in intercepting drug smugglers on an underwater scooter.

Trafficking via air cargo

The number of kilograms of cocaine seized in air cargo has also seen a significant increase. In 2023, Customs seized almost 2,250 kg of cocaine at airfields, compared to almost 1,300 kg in 2022. There is also more intensive collaboration at airports between Customs and the business community. This includes the sharing of information about drug consignments.

Cooperation with Latin America

In contrast, countries in Latin America have seen a fall in the seizure of drugs heading to the Netherlands. In Brazil, there has been a remarkable decrease in the number of seizures of drugs destined for the Netherlands. In recent years, Dutch Customs have intensified cooperation with Customs in Brazil. Last year saw the launch of a pilot involving the sharing of scanned images. There has also been increasing cooperation with other countries, including with Customs in Ecuador, Panama and Costa Rica. Liaison officers have also been posted in various Latin American countries and Customs treaties have been agreed, including with Ecuador. This will make it possible for the different Customs services to share even more valuable intelligence.

Source: Government of the Netherlands

News item | 22-12-2023 | 14:45

This is one of the measures taken by the government so as to increase knowledge and raise awareness of the history of slave-trading and, in doing so, aid the healing process and gain a better understanding of its consequences.

Minister Weerwind: “The apologies that have previously been made in respect of the history of slave-trading were not the end, but only one aspect. It is up to the government and society as a whole to follow through on these apologies. Making it easier for descendants of enslaved persons to change their surname, free of charge, is an initiative that is a good follow-up of the excuses made and the subsequent steps that are being taken.”

In the colonial past, enslaved persons were often not given the opportunity to choose their own name, and were given names instead. This name would often include a reference of the (former) slave owner or the plantation where they worked.

Adults who have such a surname will soon be able to change their surname, free of charge. The current costs for changing your surname amounts to € 835. Furthermore, the person requesting such a change is also currently required to submit a psychological statement evidencing that he/she is experiencing problems due to his/her surname. This will become a thing of the past. In these cases, the name change will be free of charge. A statement evidencing that the person involved is a descendant of an enslaved person will suffice.

The internet consultation for this proposal has been completed and the proposal will now be sent to the Council of State. The Council of State always advises the government on proposed legislation and regulations, as part of regular procedure.

Source: Government of the Netherlands

News item | 22-12-2023 | 14:34

The proposal implements a European Commission directive that incorporates inflation over the past 10 years into the criteria used to classify companies. This classification determines the degree of accountability companies have to provide for their finances.

Companies are classified based on their balance sheet total and net turnover. The categories of companies are micro, small, medium and large. The threshold amounts of this classification will be increased by 25%, so that some companies will fall into a lower category. In this lower category, they have to include less information in their annual reporting and in some cases, they no longer have to have it audited by an auditor. The estimated savings for the business community from this increase is approximately EUR 45 million. The proposal is that companies may also apply the increased threshold amounts for the 2023 financial year. This was the express wish of the business community and audit firms.

European Directive

The proposal implements the directive published by the European Commission on 19 October 2023 to increase the threshold amounts for micro, small, medium and large legal entities. Minister Weerwind for Legal Protection implements the increase by a general order in council. The government has agreed to submit this draft decision to the Council of State for advice. The final decision is expected to be published in the first quarter of 2024.

Source: Government of the Netherlands

News item | 22-12-2023 | 09:33

€102 million for humanitarian aid and pressing needs

For the first four months of 2024 the government has reserved €102 million to help Ukraine get through the winter and prepare for spring. During his visit to Ukraine on 15 December, Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen detailed how the money will be allocated.

The ongoing war is taking an increasingly heavy toll on Ukraine’s society and economy, and the country is as much in need of help as ever. This latest support package focuses on the most pressing needs:

• €15 million for humanitarian assistance through the UN’s Office for the Coordination of Humanitarian Affairs (OCHA);
• €15 million for clearing mines from agricultural land and areas liberated from Russian control;
• €62 million to help the Ukrainian government provide basic services, repair critical infrastructure and roll out reforms under the Special Program for Ukraine and Moldova Recovery (SPUR), a facility of the World Bank’s International Development Association;
• €10 million for the delivery of materials for the electricity grid.

Development minister Geoffrey van Leeuwen visits Ukraine

Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen was in Kyiv on 15 December for a visit to a power station and to discuss reconstruction and emphasise the Netherlands’ continuing support for Ukraine.

Mr Van Leeuwen said, ‘Arrived in Kyiv, where I emphasised the crucial importance for Ukraine to stand firm against Russian aggression, especially now that winter has arrived. The Netherlands is assisting with humanitarian aid and support for the recovery of critical infrastructure.

Ensuring the continuity of key sectors, including energy infrastructure, is part of our efforts to aid Ukrainians as they face the winter ahead.’

More than €2 billion in support in 2024

Other Dutch funding in 2024 will consist of €2 billion in military support, a contribution of €295 million to the European Peace Facility (EPF), €89 million to help combat impunity and €3 million for non-military cyber support.

More information about the Dutch aid for Ukraine.