Financial Crime World

Title: Dutch Regulator Cracks Down on Money Laundering: What Dutch Financial Institutions Need to Know

The Netherlands and Money Laundering

  • The Netherlands, with the 17th largest economy globally and an increasing number of international fintech businesses, is a prime target for money launderers and financial criminals.
  • In response, the Dutch government has enacted robust Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) laws.
  • Failure to comply can result in hefty fines for institutions.

The Authority for the Financial Markets (AFM)

  • The Netherlands’ primary financial regulator is the Authority for the Financial Markets (AFM).
  • Established in 2002, the AFM is responsible for supervising Dutch financial entities to ensure adherence to AML regulations.
  • The organization covers savings, investment, insurance, loans, and more.
  • The AFM, in collaboration with the Dutch central bank (De Nederlandsche Bank or DNB), issues licenses to financial institutions.

Key AML Legislation in the Netherlands

  • The primary AML legislation in the Netherlands is the Anti-Money Laundering and Anti-Terrorist Financing Act –Wet ter voorkoming van witwassen en financieren van terrorisme, Wwft.
  • The Act mandates risk-based AML measures for financial institutions, such as:
    • Identity and beneficial ownership verification
    • Transaction screening
    • Adverse media checks
    • Sanctions list screening

European Union’s Anti-Money Laundering Directives (AMLD)

  • The European Union’s anti-money laundering directives also apply to the Netherlands.
  • The latest directive, 6AMLD, introduced in June 2021, expanded the criminal scope of money laundering, increased penalties, and established new provisions.

Regulatory Developments and Updates

  • The AFM and DNB inform firms of the latest regulatory developments.
  • Recent updates include the publication of enforcement actions, guidance on Ukraine sanctions, and recommendations for fintech regulations.
  • In June 2022, the European Union agreed on Markets in Crypto Assets (MiCA), a Europe-wide crypto regulation framework.

How Ripjar Can Support AML Compliance in the Netherlands

  • Ripjar’s Labyrinth Screening platform can assist Dutch financial institutions in their AML compliance journey.
  • Utilizing real-time access to thousands of risk data sources in 21 languages, Labyrinth Screening enables quick reaction to legislative changes, emerging criminal methodologies, and instant updates on customers’ risk profiles.

For more information on how Ripjar can support your AML compliance in the Netherlands, contact us today.