Financial Crime World

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Regulations in the Netherlands

Key Legislation and Regulations

The Netherlands has implemented several key laws and regulations to prevent money laundering and terrorist financing. Some of these include:

1. Sanctions Act

  • Purpose: To prevent, detect, investigate, and prosecute money laundering and terrorist financing.
  • Key points:
    • Improves transparency in financial transactions
    • Enhances collaboration among law enforcement agencies
    • Increases penalties for non-compliance

2. Wire Transfer Regulation 2 (WTR 2)

  • Purpose: To improve the traceability of information accompanying transfers of funds, contributing to preventing, detecting, and investigating money laundering and terrorist financing.
  • Key points:
    • Mandates the use of unique identifiers for transactions
    • Increases reporting requirements for financial institutions
    • Enhances customer due diligence

3. Act on the Supervision of Trust Offices 2018 (Wet toezicht trustkantoren – Wtt)

  • Purpose: To protect the integrity of the financial system by regulating the trust sector and contributing to the prevention of money laundering and terrorist financing.
  • Key points:
    • Establishes clear rules for trust offices
    • Enhances oversight and monitoring
    • Increases penalties for non-compliance

4. Pensions Act (Pensioenwet – Pw)

  • Purpose: To enshrine integrity risk management at pension funds, requiring them to structure their organization to safeguard sound and ethical operational management.
  • Key points:
    • Mandates robust risk management practices
    • Enhances transparency in financial transactions
    • Increases penalties for non-compliance

Compliance Tools and Guidance

To ensure compliance with AML/CTF regulations, the Dutch government has developed various guidelines and tools. These include:

1. Regulation implementing the Anti-Money Laundering and Anti-Terrorist Financing Act

  • Purpose: To provide further rules for financial institutions supervised by DNB.
  • Key points:
    • Clarifies reporting requirements
    • Enhances customer due diligence
    • Increases penalties for non-compliance

2. Guideline on the Anti-Money Laundering and Counter-Terrorist Financing Act and the Sanctions Act

  • Purpose: To clarify statutory obligations arising from the Wwft, the Sanctions Act, the WTR2, and the GDPR.
  • Key points:
    • Provides compliance tools for financial institutions supervised by DNB
    • Enhances transparency in financial transactions
    • Increases penalties for non-compliance

International Cooperation and Standards

The Netherlands participates in international efforts to combat money laundering and terrorist financing. Some of these include:

1. European Banking Authority (EBA)

  • Purpose: To contribute to protecting the financial system against money laundering and terrorist financing through guidelines and recommendations.
  • Key points:
    • Develops guidelines for competent authorities, banks, and other financial institutions
    • Enhances collaboration among EU member states
    • Increases penalties for non-compliance

2. Financial Action Task Force (FATF)

  • Purpose: To tackle money laundering and terrorist financing through standards and evaluations.
  • Key points:
    • Develops international standards for AML/CTF regulations
    • Conducts evaluations of member countries’ compliance
    • Enhances collaboration among member countries

Sector-Specific Information

For more information on AML/CTF regulations and best practices, please visit the sector pages linked below:

These resources provide guidance and tools for various sectors to ensure compliance with AML/CTF regulations in the Netherlands.