Financial Intelligence Unit Cracks Down on Money Laundering and Terrorism Financing
Combating Financial Crimes in the Netherlands
The Finance Intelligence Unit Nederland (FIU-Nederland) plays a vital role in preventing money laundering and terrorism financing in the Netherlands. To achieve this, financial institutions are required to report unusual transactions involving their customers to the unit immediately.
What Constitutes an Unusual Transaction?
According to FIU-Nederland, unusual transactions include:
- Large cash payments into credit card accounts
- Exchanging significant amounts of currency or low-value banknotes for high-value ones
- Spending or withdrawing excessive funds outside a customer’s normal operations
FIU-Nederland has also compiled a list of indicators that can help financial institutions detect suspicious activities.
Reporting Unusual Transactions through goAML Portal
Financial institutions must report these unusual transactions through the goAML portal, an online system designed to facilitate Anti-Money Laundering (AML) reporting. Those who are required to register for the portal include:
- Accountants
- Traders
- Intermediaries
- Real estate agents
- Civil-law notaries
The process is done anonymously, and financial institutions are shielded from liability in case their reports result in damage to customers.
Obligated Groups and Reporting Requirements
FIU-Nederland has identified several groups that are obligated to report unusual transactions, including:
- Financial organisations
- Business service providers
- Financial service providers
Financial institutions should be aware that any information they provide to FIU-Nederland cannot be used against them.
Cross-Border Constructions and Tax Reporting
In addition to reporting suspicious transactions, FIU-Nederland also requires intermediaries such as accountants or tax consultants to report cross-border constructions that may be set up to avoid taxes to the Dutch Tax and Customs Administration.