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The Netherlands’ Financial Sector to Adopt Risk-Based Approach to Combat Financial Crime
As part of a public consultation, De Nederlandsche Bank (DNB), the country’s supervisory authority, has submitted a new anti-money laundering approach to financial institutions and stakeholders. The policy document outlines how DNB plans to provide more practical guidance while also increasing the responsibility of financial institutions in fulfilling their role as gatekeepers against financial crime.
Proposed Risk-Based Approach
The proposed risk-based approach aims to strike a balance between maintaining a clean financial sector and preventing overly stringent controls that could deny services to customers unnecessarily. Financial institutions and stakeholders have until November 30th to respond to the proposals, with the final policy document expected to be published in early 2024.
Background
DNB’s new approach follows its previous call for a more targeted strategy in its report “From Recovery to Balance”. The report argued that current practices can be made more efficient while remaining within the legal framework of the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft).
Key Features of the Proposed Approach
Under the proposed risk-based approach, financial institutions will be able to conduct customer and transaction checks more efficiently using innovative technologies such as machine learning. Additionally, the approach should help ensure that stringent controls do not unnecessarily impede customers’ access to banking services.
- Conduct customer and transaction checks more efficiently using innovative technologies
- Ensure stringent controls do not unnecessarily impede customers’ access to banking services
Industry Feedback and Implementation
The Dutch Banking Association (NVB) has already published its own standards and examples of how banks can implement specific Wwft provisions following round-table sessions with financial institutions and DNB last year. The new policy document focuses on the entire financial sector, covering all stakeholders.
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