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Procedure for a penalty from a Dutch Regulatory Authority

Dutch regulatory authorities enforce laws through inspections and audits. These authorities, such as KSA, NVWA, ILT, DNB, and AFM, play a crucial role in ensuring that companies comply with Dutch regulations. Their inspections are a fundamental part of maintaining a lawful business environment in the Netherlands. When a violation is found, an administrative penalty is often imposed. Additionally, authorities may issue fines or use administrative coercion to ensure compliance.  The procedure for a penalty from a Dutch Regulatory Authority can be challenging if you are inexperienced. Our Dutch lawyers in Amsterdam shall explain the most important aspects.

If you face a penalty, a Dutch administrative lawyer can help you lodge an objection or represent you during inspections and hearings. When a violation is found, an administrative penalty is often imposed. Additionally, authorities may issue fines or use administrative coercion to ensure compliance. If you face a penalty, a Dutch administrative lawyer can help you lodge an objection or represent you during inspections and hearings.

What happens after a violation is found in the Netherlands?

When a violation is discovered, the regulatory authority will usually draw up a penalty report detailing the offenses committed. This report, and beginning of a procedure for a penalty from a Dutch Regulatory Authority, may include statements from company employees and is sent to the inspection department along with supporting documents. The offending company also receives a copy of the report.

It is essential to carefully review the report with your Dutch lawyer. This document forms the basis for any fines imposed, and errors could significantly impact the penalty. An incorrect penalty report can have serious financial repercussions, and addressing inaccuracies early on can mitigate further issues. The amount of the fine is typically predetermined by law or aligned with standard fine rates.

How should you respond to company inspections in the Netherlands?

Dutch regulatory authorities, including ILTFIOD, and Dutch Customs, have the power to inspect or raid company premises. If this happens, it is crucial to involve a Dutch administrative lawyer as you are entitled to have your lawyer present. During an inspection, you may also need advice on invoking your right to remain silent (art. 5:10a Awb) or understanding your obligation to cooperate (article 5:20 Awb).

An administrative lawyer in the Netherlands can guide you through the inspection process and ensure your rights are protected. They can also help you navigate issues that arise from such inspections, especially when multiple authorities are involved.

When can you invoke your right to remain silent?

If you are questioned as a suspect, you have the right to remain silent and request your lawyer’s presence. As a witness, you may have to invoke duty of confidentiality based on professional rules. During a regulatory inspection, authorities must provide a caution before questioning begins, which informs you of your right to remain silent when a punitive sanction is involved.

Whether you must comply with requests under art. 5:20(1) of the Awb depends on the specifics of the case. Always consult your lawyer on these matters, as non-compliance can result in additional penalties. 

What should you do when an authority intends to impose a fine?

Before a fine or penalty payment in the Netherlands is enforced, the Dutch regulatory authority must inform you of their intention to do so. This allows you to submit your opinion on the decision. It is highly advisable to prepare this opinion in writing, ideally with the help of an administrative lawyer. They can present the facts and circumstances accurately, potentially reducing or even avoiding penalties.

The regulatory authority may issue an informal warning before imposing a fine, which gives you a chance to comply and avoid further enforcement. Always take advantage of this opportunity by submitting your response. For more insights on penalties and administrative procedures, refer to penalty payments under Dutch Law.

How does the objection and appeal process work in the Netherlands?

Once a penalty decision in the Netherlands is made, you have six weeks to file a notice of objection. Your lawyer can assist in drafting a well-supported appeal, meeting all the statutory requirements. After the notice of objection is submitted, a hearing may be scheduled where you can present your case. The decision usually follows within 12 weeks from the deadline for objections.

If the objection is rejected, you can further appeal to the Dutch administrative court. Your lawyer will represent you, and this is the point where a judge can reconsider the facts and potentially alter the outcome. Court fees will apply, but a successful appeal can lead to penalty reimbursement with statutory interest. For more information about the litigation process in such cases, please visit litigation in the Netherlands.

Does Filing an Appeal Suspend the Penalty Payment Obligation?

The general rule is that you must pay the imposed fine even if you decide to appeal the decision. If successful, the penalty plus interest will be refunded. However, in some situations, your lawyer may be able to request a provisional ruling to suspend the payment while the appeal is ongoing. There must be a substantial reason for suspension, and sometimes payment arrangements can be negotiated. You can read more on managing penalties and provisional rulings at procedural law in the Netherlands.

Can You Lodge a Complaint Against a Regulatory Authority?

If you believe a Dutch regulatory authority has acted improperly, you can file a complaint with the complaints committee. This is particularly useful if you experience issues with the conduct of inspectors or feel there was an abuse of power during an inspection. Assistance from a Dutch administrative lawyer at this stage can help ensure your complaint is properly assessed and taken seriously. If you need more information on legal representation and complaint procedures, visit our website: legal representation lawyers in the Netherlands.

Contact our Dutch law firm

It is always beneficial to seek legal assistance early when dealing with Dutch regulatory authorities. MAAK’s lawyers are experienced in regulatory compliance and enforcement, ready to offer expert guidance. For any legal inquiries or support in the Netherlands regarding a procedure for a penalty from a Dutch Regulatory Authority, please feel free to contact our adept team at MAAK Advocaten. Committed to excellence, our Dutch lawyers provide superior legal services tailored to your distinct needs. You can reach our law firm in the Netherlands through our website, by email, or phone. Our approachable and skilled staff at MAAK Attorneys will be delighted to assist you, arranging a meeting with one of our specialized attorneys in the Netherlands. Whether you need a Dutch litigation attorney or a Dutch contract lawyer in Amsterdam, we are eager to guide you through the legal intricacies and secure the most favorable results for your situation.

Contact details

Remko Roosjen | attorney-at-law (‘advocaat’)
+31 (0)20 – 210 31 38
remko.roosjen@maakadvocaten.nl

The information on this legal blog serves purely for educational purposes and should not be taken as specific legal guidance. While we endeavor to maintain accurate and current information, we do not assert its absolute completeness or relevance to your particular situation. For advice tailored to your legal concerns, we urge you to engage with a licensed attorney. Please note that the blog’s content may change without notice, and we are not liable for any inaccuracies or missing information.

Remko Roosjen

Remko Roosjen

Remko Roosjen is a Dutch contract attorney in the Netherlands and creates close working relationships with clients, providing pragmatic solutions across on all legal matters in the Netherlands. Remko is a partner of our commercial law firm in Amsterdam, the Netherlands. His specialist areas include Dutch contract law, including Dutch commercial contracting and legal disputes, including civil litigation under Dutch law, arbitration in the Netherlands and other forms of dispute resolution, such as mediation. Remko Roosjen is a sharp, creative Dutch attorney with extensive cross-border experience representing both foreign plaintiffs and defendants. Visit Remko's profile via the website or via his LinkedIn Profile.