US Anti-Money Laundering Regulations Tighten Grip on Netherlands-Based Firms
European Authorities Crack Down on Money Laundering and Terrorist Financing
In an effort to combat money laundering and terrorist financing, European authorities are taking a more stringent approach to regulating gatekeepers in the Netherlands. This includes banks, accountants, and financial institutions operating within the country.
Enforcement Actions Against Non-Compliant Companies and Individuals
The Dutch Money Laundering and Terrorist Financing Prevention Act (Wwft) and various EU anti-money laundering directives have led to a significant number of enforcement actions against companies and individuals violating these regulations. International economic and financial sanctions have also been imposed on certain countries and parties, prohibiting trade with these entities or provision of financial resources.
Consequences of Non-Compliance
Failure to comply with Wwft or the Dutch Sanctions Act 1977 can result in severe consequences for companies and their management, including:
- Hefty fines
- Personal liability for directors
The regulatory authorities are increasingly scrutinizing the compliance practices of financial institutions, which may impact the future careers of directors involved. A recent example is the fit-and-proper assessment conducted by regulators, which can have long-term implications for individuals serving on company boards.
Expert Advice for Companies in the Netherlands
In response to these developments, a growing number of companies in the Netherlands are seeking expert advice on complying with anti-money laundering regulations and sanctions laws. Our AML & Sanctions team provides daily guidance to gatekeepers, including financial institutions, accountants, and other parties subject to Wwft, on matters such as:
- Client due diligence
- Transaction monitoring
- Investigations into unusual transactions
- Reviewing compliance policies
Comprehensive Support for Compliance Framework Setup
Our team also assists with setting up an overall compliance framework for license applications with the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). This comprehensive support helps companies establish a robust compliance infrastructure, ensuring they are well-equipped to navigate the complex regulatory landscape in the Netherlands.