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USA Anti-Money Laundering Regulations in Netherlands: New European Rules and Dutch Implementations
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In a bid to strengthen anti-money laundering (AML) regulations across the European Union, new rules have been adopted by the European Parliament in April. The AML package consists of a revised directive (AMLD6), a new regulation (Single Rule Book), and the establishment of a new European supervisor, known as the AML Authority (AMLA). While these rules will apply at an EU-wide level, their implementation will be shaped by individual member states, including the Netherlands.
Limitations on Cash Payments
One key aspect of the new AML package is the introduction of a EUR 10,000 limit for cash payments across the EU. For transactions between EUR 3,000 and EUR 10,000, financial institutions must identify and verify the parties involved. The Netherlands has already taken steps to implement this rule through its pending anti-money laundering bill (Wet plan van aanpak witwassen), which prohibits cash transactions exceeding EUR 3,000 for certain professions, including:
- Traders in goods
- Buyers or sellers of works of art
- Pawnbrokers
New European Supervisor
AMLA, the new European supervisor, will be located in Frankfurt and will oversee financial institutions across the EU. Each member state must designate at least one financial institution as being in the highest AML/CFT risk category, which will be supervised directly by AMLA. Other financial and non-financial AML-regulated institutions will be supervised indirectly through national supervisors.
Dutch Implementations
The Dutch Ministry of Finance and Ministry of Justice and Security have updated their guidelines on the Dutch AML Act to incorporate a broader scope of application, including:
- Gaming providers
- Companies offering professional services that exchange virtual currency for fiduciary currency
- Companies that offer wallets in the course of a business
The new guidelines also refer to international standards set by the Financial Action Task Force (FATF) and provide guidance on preventing discrimination related to client due diligence.
UBO Register Extracts
As part of its AML obligations, financial institutions must have an extract from the Ultimate Beneficial Owner (UBO) register on file for new business relationships. Until June 2024, a special procedure will apply for legal entities when starting a new business relationship with AML-regulated institutions.
What Next?
The text of the new European AML package is expected to be published after the European Council adopts the laws. Implementation by EU member states, including the Netherlands, is expected in 2027.