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Developing case for and implementing a global treasury centre in Netherlands

A global treasury centre consolidates all cash and FX positions within a corporate worldwide. Nelischer explains his award-winning approach to defining the scope, evaluating the triggers for a global centre, assessing the advantages of citing a centre in the Netherlands, and then maximising the efficiency and contribution of the global corporate treasury centre.


Define the scope of your global corporate treasury centre:

  • Identify what is feasible in your organization, based on legal and regulatory requirements. (Remember almost everything in corporate treasury can be managed in a central location.)
  • Aim to maximise the scope for the global treasury centre without setting unrealistic targets 
  • Assess the need for internal treasury activities such as intercompany funding, centralised cash management, and netting centre
  • Aim for the Global Treasury Centre to be a centre of excellence, and a showcase of the value treasury adds across the company

Review the triggers below for actually creating such a vehicle, and how they apply to your organisation:

  • Will your central Treasury entity naturally develop into the single Global Treasury Centre by default as the company grows 
  • Have M&A deals resulted in several treasury entities in the organisation? Is a Global Treasury Centre now needed as part of the rationalisation?
  • 3.    Review whether these advantages of locating a global treasury centre in the Netherlands apply to your organisation: Is your UK-based corporate with a local treasury entity going to want to detach its Treasury activity from post-Brexit-impact?

Review whether these advantages of locating a global treasury centre in the Netherlands apply to your organisation:

  • Well established base to do business, e.g. a rare AAA-rating of a sovereign; ranked 4th in the Global Competitiveness Report 2016/17 which is highest out of any EU country
  • Business-friendly legislation, e.g. the one-tier board of a company works well for US corporations, English language statutory documents are largely acceptable
  • Excellent infrastructure and a high-class workforce
  • Tax treaties in the Netherlands generally reduce foreign withholding tax on interest
  • Netherlands does not impose any withholding tax or stamp duty itself
  • Verify whether Netherlands tax and corporate structure work with your corporate financial strategy.

Ensure maximisation of workflows, people and systems/technology in global treasury centre by:

  • Exercising managerial authority within corporate policies and guidelines in your framework of corporate governance (The traditional approach of additional review and sign-off steps does not work; control needs to be built into the natural work-flow.)
  • Avoiding duplication of administrative work to optimize the value-add in the back-office, settlement and control functions to maximize efficiency
  • Using a high degree of system integration for efficient workflow, e.g. self-managing, automated process controls to help the treasury team to avoid the cumbersome and time-consuming box-ticking and red tape that often plagues treasury operations. 

CTMfile take: Use this Checklist to decide whether a global treasury centre in Netherlands would benefit your company.

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