Dutch Central Bank’s Crusade Against Financial Crimes: Prevention Measures in the Netherlands

Contents

• Legislation
  • European Directives
  • Financial Supervision Act (Wet Financieel Toezicht – Wft)
  • Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft)
  • Sanctions Act (Sanctiewet 1977)
  • Wire Transfer Regulation 2 (WTR 2)
  • Act on the Supervision of Trust Offices (Wet toezicht trustkantoren – Wtt)
  • Pensions Act (Pensioenwet – Pw)
  • Regulation implementing the Anti-Money Laundering and Anti-Terrorist Financing Act (Uitvoeringsregeling Wwft)
• Policy Statements
• European and Other International Organizations
  • European Banking Authority (EBA)
  • Financial Action Task Force (FATF)

Legislation

European Directives

The European Union’s (EU) anti-money laundering directives aim to prevent money laundering and terrorist financing by prescribing preventive measures. These directives are based on the recommendations of the Financial Action Task Force (FATF).

Financial Supervision Act (Wet Financieel Toezicht – Wft)

Besides prudential rules, the Wft contains provisions to monitor ethical business practices. While not specifically aimed at money laundering and terrorist financing, the Wft provisions aim to prevent unethical behavior by financial institutions, their policymakers, and employees.

Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft)

The Wwft is the Dutch law dedicated to preventing money laundering and terrorist financing. It implements European anti-money laundering directives and international standards set by the FATF. The Wwft applies to banks, other financial corporations, and specific professions.

Sanctions Act (Sanctiewet 1977)

Imposed on individuals, organizations, and countries, sanctions serve to make it difficult to engage in or prevent undesirable behavior. The Sanctions Act implements international and (inter)national rules on international sanctions.

Wire Transfer Regulation 2 (WTR 2)

The aim of the WTR2 is to improve the traceability of information accompanying transfers of funds, contributing to the prevention, detection, and investigation of money laundering and terrorist financing.

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

The Wtt regulates the trust sector to protect the integrity of the financial system and prevent money laundering and terrorist financing.

Pensions Act (Pensioenwet – Pw)

At pension funds, integrity risk management is mandatory under the Pw, ensuring sound and ethical operational management.

Regulation implementing the Anti-Money Laundering and Anti-Terrorist Financing Act (Uitvoeringsregeling Wwft)

This regulation uses the option given by the Anti-Money Laundering and Anti-Terrorist Financing Act to lay down further rules.

Policy Statements

DNB issues various types of policy statements, including supervisory regulations, policy rules, and guidelines.

European and Other International Organizations

European Banking Authority (EBA)

In 2019, the EBA was granted the mandate to protect the financial system against money laundering and terrorist financing.

Financial Action Task Force (FATF)

Initially set up by the G7, the FATF has been working to counter money laundering and terrorist financing internationally. Stay updated on the latest FATF alert lists under Sector news.