Combating Money Laundering in the Netherlands: An Overview of AML/CFT Regulations

The Netherlands has emerged as a prime target for money launderers and financial criminals due to its status as one of the world’s largest economies and a hub for international businesses. In response, the Dutch government has implemented a robust anti-money laundering (AML) and counter-terrorism financing (CFT) framework to combat this threat.

The Authority for the Financial Markets (AFM)

At the heart of this framework is the AFM, the Netherlands’ primary financial regulator, which oversees the entire financial sector to ensure compliance with AML regulations. The AFM shares its responsibilities with the Dutch central bank, De Nederlandsche Bank (DNB), and together they issue licenses to all financial institutions operating in the country.

Key AML Regulations

Some of the key AML regulations in the Netherlands include:

Anti-Money Laundering and Anti-Terrorist Financing Act: This law requires financial institutions to take a risk-based approach to AML, involving:
- Risk assessments on individual customers
- Verification of customer identities
- Implementation of compliance measures, including transaction screening and adverse media checks

Enforcement Actions

In recent years, the AFM has taken enforcement action against several firms for non-compliance with AML regulations. For example:

ABN Amro settlement: The AFM imposed a €480 million settlement on ABN Amro in 2021 for non-compliance with AML regulations.

Guidance and Support

To stay up to date with the latest AML/CFT regulatory developments, firms in the Netherlands can turn to the AFM and DNB, which:

Publicize enforcement actions
Provide guidance on key issues such as fintech and cryptocurrency regulation
Issue guidance on new sanctions against Russia and Russian individuals following the invasion of Ukraine

Next-Generation Risk Management Capabilities

For firms looking to reduce their compliance burden and streamline their screening processes, Ripjar’s Labyrinth Screening platform offers next-generation risk management capabilities, including:

Real-time searches of thousands of risk data sources
Advanced name matching technology
Ability to quickly react to changes in legislation or emerging criminal methodologies
Stay informed as customer risk profiles change