Netherlands Emphasizes Anti-Money Laundering Compliance Amid Growing Global Threat

The Netherlands, with its 17th largest economy in the world by GDP and a growing number of international businesses, has become a target for money launderers and other financial criminals seeking to exploit the country’s financial system. To combat this threat, the Dutch government has implemented a robust anti-money laundering (AML) and counter-financing of terrorism (CFT) framework with significant penalties for firms that fail to comply.

Key Players in the Netherlands’ AML/CFT Infrastructure

Authority for the Financial Markets (AFM): The country’s primary financial regulator, established in 2002. The AFM oversees the entire financial sector and its products and services, ensuring compliance with AML regulations.
Dutch Central Bank (DNB): Focuses on providing prudential supervision.

Main Article of AML Regulation in the Netherlands

The main article of AML regulation in the Netherlands is the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme or Wwft). This Act requires financial institutions to take a risk-based approach to AML, performing risk assessments of individual customers and implementing a range of compliance measures.

Key AML Regulations in the Netherlands

Identity verification: Establishing and verifying the identities of customers through the collection of information such as names, addresses, dates of birth, and official company documentation.
Beneficial ownership verification: Extending the customer due diligence process to ensure that customers are not using corporate infrastructure or shell companies to conceal financial crimes.
Transaction screening: Screening customer transactions against relevant risk data sources, including beneficial ownership registries, politically exposed person (PEP) lists, and sanctions lists.
Adverse media: Screening customers against global adverse media sources to reveal changes in risk profile before that information is confirmed by official sources.

Recent AML Developments in the Netherlands

The AFM and DNB keep firms in the Netherlands up-to-date with the latest AML/CFT regulatory developments. Key recent updates include:

Enforcement actions: The AFM publicizes enforcement actions and monetary penalties imposed for compliance failures.
Ukraine sanctions: Following Russia’s invasion of Ukraine, the DNB published guidance for firms regarding new sanctions against Russia and Russian individuals.
Fintech: The AFM and DNB publish guidance and recommendations regarding the regulations of fintech products and services, including cryptocurrencies and cryptocurrency service providers.

Next Generation Risk Management in the Netherlands

Ripjar’s Labyrinth Screening platform can help firms reduce their compliance burden and streamline their screening processes. Labyrinth Screening enables firms to search thousands of risk data sources in real-time, in 21 languages. Incorporating next-generation name matching technology, Labyrinth Screening enables firms to react quickly and efficiently to changes in legislation or emerging criminal methodologies.

For more information on how Ripjar can support your AML compliance in the Netherlands, contact us today.