Definition of 'Flexible System' for Administrative Fines

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Question:

What does 'flexible system' mean?

Published: 22 February 2022

Answer:

This system means that while a statutory baseline amount is used for the fine or penalty category in which the act of non-compliance was classified, this amount may be increased or reduced to take account of relevant circumstances. The fine or penalty amount is tailored to the specific circumstances of the case. Circumstances that can be taken into account include:

the gravity or duration of the non-compliance

the degree of culpability of the non-compliant party

repetition of the offence

the non-compliant party's size

the measures that the non-compliant party has taken to prevent recurrence

other special circumstances

the non-compliant party's ability to pay.

Some of the circumstances are set out in more detail in the Decree on Administrative Fines in the Financial Sector. We have established a policy with regard to setting fines and penalties. See DNB's fine and penalty amounts policy (Government Gazette 2020, 63846 - Dutch Only) .

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