Financial Crime World

Dutch Central Bank Cracks Down on Financial Crime and Terrorism Financing: A Look at the Legal Framework and Policy Statements

The Netherlands, known for its robust financial sector, is committed to preventing its financial system from being used for nefarious activities such as money laundering and terrorism financing. De Nederlandsche Bank (DNB), the country’s central bank, spearheads this effort. In this article, we provide an overview of the international and national legal frameworks and DNB’s policy statements that guide its integrity supervision.

Contents

  1. Legislation
    • European Directives
    • Financial Supervision Act (Wet Financieel Toezicht – Wft)
    • Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financeren 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)
  2. Our Policy Statements
  3. European and Other International Organisations
    • European Banking Authority (EBA)
    • Financial Action Task Force (FATF)

Legislation

European Directives

The European Union (EU) has enacted a series of directives, based on the recommendations of the Financial Action Task Force (FATF), to prevent the use of the financial system for money laundering and terrorism financing. Access the directives here.

Financial Supervision Act (Wet Financieel Toezicht – Wft)

The Wft sets rules for prudential supervision as well as provisions aimed at maintaining ethical business practices. Although it does not directly target money laundering and terrorism financing, it outlines rules to prevent unethical behavior by financial institutions, their policymakers, and employees. Learn more about the Wft here.

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

The Wwft focuses on preventing money laundering and terrorist financing in the Netherlands. It implements European anti-money laundering directives and international FATF standards. Applicable to banks, other financial institutions, and specific professions, it necessitates a risk-based approach to mitigate these risks. Get more information about the Wwft here and the central government’s legal framework here.

Sanctions Act (Sanctiewet 1977)

Sanctions are crucial for international peace, law, and countering terrorism. The Sanctions Act implements international and national rules on international sanctions and mandates financial institutions to use sanctions lists to monitor relationships and report any matches. Find out more about the Sanctions Act and sanctions regulations here.

Wire Transfer Regulation 2 (WTR 2)

The WTR2 aims to enhance the traceability of funds transfer information to facilitate the prevention, detection, and investigation of financial crimes. Learn more about the WTR2 here.

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

The Wtt regulates the trust sector and seeks to safeguard the integrity of the financial system by preventing money laundering and terrorism financing. Discover more about the Wtt here.

Pensions Act (Pensioenwet – Pw)

The Pw mandates pension funds to maintain a healthy financial system by implementing integrity risk management measures. Read more about this subject here.

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

The Wwft allows the laying down of additional rules, which this regulation employs. Learn more about the regulation here.

Our Policy Statements

DNB issues various policy statements, including supervisory regulations, policy rules, and guidelines. Access our Guideline on the Wwft and the Sw here. Check out the sectoral integrity pages under ‘Sector information’ for additional sector-specific statements.

European and Other International Organisations

European Banking Authority (EBA)

Following a mandate in 2019, the EBA now leads efforts to protect the EU financial system against money laundering and terrorism financing, previously shared with ESMA and EIOPA. The EBA’s guidelines and recommendations promote consistent supervisory practices. Find out more about the EBA’s initiatives here.

Financial Action Task Force (FATF)

Established by the G7, the FATF combats money laundering and terrorism financing globally. Member countries, like the Netherlands, must adhere to FATF standards. The Netherlands’ compliance with these standards was evaluated in 2021. For more information on the FATF’s mission and objectives, as well as related links, click here. Don’t miss the latest developments about the FATF alert lists under ‘Sector news’. View the current lists here.