Financial Crime World

New Obligations for Reporting Financial Crimes in the Netherlands: What You Need to Know

The Dutch Financial Intelligence Unit (FIU-Netherlands) has issued a call to action for businesses and individuals to abide by new reporting requirements under the Money Laundering and Terrorist Financing (Prevention) Act (Wwft). Here’s what you need to know about these changes.

New Reporting Entities

With the recent amendments to the Wwft, certain groups are now mandated as reporting entities, acting as the financial system’s gatekeepers. These entities include both legal entities and natural persons as outlined below:

  1. Legal Entities: Please refer to the extensive list of reporting entities on the FIU-Netherlands website to determine if your business falls into this category.
  2. Natural Persons: Those performing certain services and acts, like real estate transactions, art dealings, and providing taxi rides, are also considered reporting entities. Yet, some activities may be exempted. Check the website for details.

If unsure about your status, consult the supervisory authority designated for your industry sector under the Wwft for clarification.

Registration Process

To register as a reporting entity, new entities need to:

  1. Fill in a form on the reporting portal.
  2. Create a unique username and password.
  3. Have main users (usually business representatives) submit a copy of their passport or ID card with authorization confirmation documents.

For preexisting entities, sub-users can simply register by stating the correct Reporting ID, which can be found on the main user’s reporting portal. After FIU-Netherlands approves your registration, you will receive an email confirmation, granting access to the reporting portal with your provided credentials.

Reporting Unusual Transactions

Once registered, reporting unusual transactions to the FIU-Netherlands is mandatory. Transactions must be reported via the reporting portal, adhering to the guidelines set forth in Article 16 of the Wwft. New users are encouraged to carefully read the instructions on their first transaction report.

  1. Log in to the reporting portal using your username and password.
  2. Choose between filling out a report form or submitting an XML report form. XML reports are mandatory for specific reporting groups and suitable for bulk reports. Inquire with FIU-Netherlands for more details.

Consequences of Non-Compliance

Under the Wwft, entities are legally bound to report both completed and intended unusual transactions. Failure to meet this obligation may lead to:

  1. Economic crime charges, as stipulated by Article 1 of the Dutch Economic Offences Act (Wet op de economische delicten, WED).
  2. Investigations by FIU-Netherlands and relevant supervisory authorities.
  3. Sanctions, penalties, or fines imposed by the authorities mentioned above.
  4. Potential legal action by the Public Prosecution Service for failure to report.

Stay informed and stay compliant – your role in preventing financial crimes is crucial. Follow the latest updates and guidelines from the FIU-Netherlands website.