To exercise effective supervision, the CBA has a range of actions available in order to apply appropriate enforcement where problems are detected. Several of these actions have a legal basis in the supervisory legislation. Such formal measures are indispensable tools for the CBA to enforce compliance if necessary. However, not every problem at a supervised institution will trigger formal enforcement measures. There are various alternative intervention methods that the CBA has at its disposal.
If the CBA establishes a violation, it will assess how it will act, whether an enforcement measure will be appropriate, and, if so, which measure. For this assessment, the CBA is guided by its enforcement policy. This public document contains clear and objective factors that guide the CBA in its enforcement decision. Depending on the nature of the problem identified, a graduated response is appropriate. In instances where the issue is relatively minor, informal action may be sufficient. In other instances, formal enforcement measures may be necessary.
Depending on the applicable supervisory state ordinance, the CBA is empowered to take one or more of the following formal measures:
- Issuing a direction (aanwijzing) to adhere to a particular line of conduct within a reasonable term.
- Appointing a trustee (stille curator); all or certain bodies of the financial institution may only exercise their powers after approval has been obtained from the trustee.
- Requesting the Court of First Instance to declare emergency regulations (noodregeling) and appoint one or more administrators who will exercise all powers of the bodies of the financial institution.
- Imposing a penalty charge order (last onder dwangom) ordering to take or desist from a certain action, while failure to comply with the order within the set term triggers an obligation to pay a penalty payment.
- Imposing an administrative fine (bestuurlijke boete), implying an unconditional obligation to pay a sum of money.
- Publishing a direction, a penalty charge order or an administrative fine.
- Prohibiting an auditor or actuary to sign mandatory the reports in relation to a financial institution.
- Revoking a banking, insurance or trust license or removal from the register of money transfer companies.
- Filing a report to the criminal authorities; breaches of some important provisions of the supervisory state ordinances constitute a criminal offence.
It may also be possible to impose an administrative sanction (i.e. a penalty charge order or an administrative fine), not only upon legal persons that are financial institutions or businesses, but also upon natural persons who ordered the violation or were de facto in charge of the violation (e.g. the institution's directors or senior management).