Cross-border Financial Police Investigations

The focus of the research is on cooperation in cross-border financial investigation. It examines how in this context the Netherlands cooperates with other countries such as Belgium and Germany, and the challenges that come with it, in order to identify possible improvements and solutions. The exploratory phase of the study, which involved interviews with field and policy experts, has recently been concluded and it has led to a number of relevant insights and points of attention. 

Reactive focus

From the exploratory phase of our study it becomes clear that financial investigation is a horizontal and widely applicable instrument that can serve various purposes. It can be used proactively to map phenomena for the purpose of prevention, risk analysis and policy determination, but also to identify concrete actors and cases. It can also play a role in the criminal investigation, prosecution and conviction, especially when it comes to the confiscation of criminal assets and profits. In practice, however, the emphasis appears to be on gathering (supporting) evidence for offences and especially parallel to a main offence for confiscation. Financial investigation therefore currently is mainly reactive and tactical. Proactive strategic financial investigation and analysis is virtually uncharted territory and, according to the experts interviewed, this is a loss because it means that relevant opportunities remain untapped. In particular, the possibility of obtaining a clearer picture and better information and intelligence position about underlying problems, which can inform tactical choices and policy. 

Knowledge and skills

In terms of policy, in the Netherlands it has been promulgated for decades already that financial investigation must be embedded in the police organisation. However, the question is whether the necessary capacity is available for this and, above all, whether it is also in the ‘DNA’ of the education and training programmes. The interviews with actors working in the field show that there is often a narrow image of the financial investigator as some sort of 'glorified accountant'. However, in order to provide insight into and track financial assets, a 'methodical centipede’ is needed with a broad knowledge of relevant investigative methods and how they complement each other in a financial context. The organisation therefore needs well-educated and trained professionals and that is precisely where challenges arise. Within regular police training, there seems to be limited attention for financial investigations and the emphasis seems to be mainly on tactical aspects such as confiscation and less on the proactive intelligence phase. The fact that the programme now also pays attention to financial crime scripting is therefore positive. Many financial experts are however external actors with highly relevant skills and knowledge who join the police at a later stage as lateral entrants. However, it turns out to be a challenge to hold on to precisely those people. These experts tend to come from the private sector, but often do not seem to be able to settle within the police organisation with its specific culture and, compared to the private sector, more limited career prospects. Much of the education and training of these lateral entrants takes place 'on the job'. This also makes it vulnerable, because training processes and knowledge gained are often not secured and institutionalised within the organisation, with the result that this evaporates when people leave or take on another position within the organisation.

Narrow operationalisation

The above also has an impact on cross-border financial investigations. Therefore, there is mainly reactive cooperation with other countries such as Belgium and Germany. This is done in response to specific requests for help where assistance is required in the context of freezing, confiscation, and gathering evidence. Proactive or intelligence-driven collaboration only happens sporadically. Investigations are mainly framed nationally, there is virtually no cross-border approach in which overarching problems are addressed. Despite the fact that financial investigation is widely applicable, in an international cross-border context it also tends to be narrowly applied.

‘Border fear’

What becomes clear from the interviews is that for the authorities, the border is often perceived as a challenge or obstacle, while criminals see the border as an opportunity. In the interviews, however, there is talk of a 'border fear' that leads to reluctance. This is explained by reference to differences in organisation, legislative framework and police culture. These differences make international cooperation time-consuming and there is often less control. These aspects are especially important when it comes to financial investigations, because 'money is fleeting' and it requires a fast and good provision of information for tactical imaging and action. 

‘Informal liaisons’

Cross-border police activities take place within a formal legal or treaty framework. To promote cooperation between countries, official liaisons have also been appointed abroad. To mitigate the challenges mentioned above, a successful formal procedure is often preceded by informal cooperation: informal preparation is crucial for a successful formal arrangement. The interviews make it clear that in addition to official liaisons, ‘informal liaisons' also play a crucial role. In the end, a limited number of people within the organisation turn out to be the informal hub on which a lot of cooperation is established and further developed. These are professionals with great cross-border expertise and they also have strong social cultural skills. Unlike official liaisons, the ‘informal liaisons’ build their network and often maintain it during and in addition to their regular work. This makes it very person-dependent and that also makes it vulnerable. The ‘informal liaisons’ that were interviewed indicate that the know-how regarding their network is not securely embedded within the organisation and that much of it will evaporate if they leave.

Points of attention

The above is only a brief reflection, but a number of points of attention can be distilled from it. Firstly, financial investigations are high on the agenda in terms of policy, but the translation into practice requires more attention, especially the proactive side. Investigations are mainly framed nationally and there is virtually no cross-border problem approach. It would be constructive to take advantage of each other's information position and work more proactively, for example by means of financially oriented cross-border operational crime and security analyses. Second, the capacity needed for this requires continuous attention. This includes education and training, but also the challenge of consolidating the capacity attracted and preventing outflow. In addition, attention should be paid to securing and promoting the specialised knowledge and know-how gained (monitoring, evaluating and sharing). This is crucial, because it seems that the most valuable skills and knowhow are learned on the job and not so much during regular education and training. It is important to ‘feed’ such expertise back into the organisation. Finally, official liaisons have been appointed abroad within the police organisation to promote cooperation. However, the research shows that a lot of collaboration is established through actors who operate as ‘informal liaisons’ who build contacts and networks, often in addition to their regular work. Given the crucial role of these ‘informal liaisons’, it is important to pay attention to their role and to strengthen en secure it.