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

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The Dutch banking system has implemented various regulations to prevent money laundering and terrorist financing. This section discusses the AML Act, transaction monitoring, industry baselines, and depositor protection.

The Dutch AML Act

Risk-Based Approach

The Dutch AML Act follows a risk-based approach, where banks implement measures based on associated risks. The cornerstone of this approach is the AML-CFT risk analysis, which determines concrete AML-CTF measures.

Customer Due Diligence (CDD)

Banks must conduct CDD when entering into business relationships or conducting transactions over €15,000. CDD involves identifying and verifying customers’ identities, Ultimate Beneficial Owners, representatives, and the purpose of the relationship.

Transaction Monitoring

Banks must monitor transactions within a business relationship to identify unusual activities using objective and subjective indicators. If a transaction meets certain criteria, it qualifies as unusual and must be promptly reported to the Financial Intelligence Unit Netherlands (FIU-NL).

Criteria for Unusual Transactions

  • Payment Amount: Any payment exceeding €15,000
  • Recipient: Payments made to countries or entities subject to international sanctions
  • Transaction Type: Suspected money laundering or terrorist financing activities

New AML-CFT Industry Baselines

The Dutch Banking Association (DBA) has drafted industry baselines that set out clear starting points for the risk-based application of the open standards in the Dutch AML Act in CDD by banks.

Key Features of the Industry Baselines

  • Standardized Definitions: Clear definitions for terms such as “beneficial owner” and “politically exposed person”
  • Risk-Based Approach: Banks must implement measures based on associated risks
  • CDD Requirements: Identification and verification of customers’ identities, Ultimate Beneficial Owners, representatives, and the purpose of the relationship

Depositor Protection

The Dutch Deposit Guarantee Scheme (DGS) is implemented under Section 3.5.6 of the DFSA and the relevant regulations thereto. The DGS regime is administered by the DNB, and the DGS funds are kept in the Deposit Guarantee Fund (DGF), which is managed by the DNB.

Accounts Eligible for Protection Under the Dutch DGS

The following types of accounts are eligible for protection under the DGS:

  • Payment Accounts
  • Savings Accounts
  • Fixed-Term Deposits
  • Life-Cycle Saving Schemes
  • Bank Savings Accounts

Note that investment products held within these accounts and subordinated deposits are generally not covered by the DGS.