The Netherlands is a country that has money laundering risks. Therefore, the Netherlands has comprehensive Anti-Money Laundering legislation. All financial institutions, especially banks, exchange offices, life insurance companies, casinos, must comply with their Money Laundering obligations. According to these obligations, all financial institutions are obliged to report cash transactions above 15,000 Euros and all other essential transactions to the Netherlands Financial Intelligence Unit (FIU).
What Is The Status of Netherlands's FATF?
Netherland is a FATF member since 1990. The Netherlands is not included in the FATF List of Countries identified as having strategic AML deficiencies.
According to this report, under the latest Mutual Assessment Report on the implementation of the Dutch anti-money laundering and anti-terrorist financing standards, compliant for 22 of the Netherlands FATF 40 + 9 Recommendations and Partially Compliant for 2 of 6 Core Recommendations or incompatible.
What Are AML Obligations in Netherlands?
Wwft is a Netherlands Anti-Money Laundering and Counter-Terrorism Financing Law. It contains various regulations and laws to prevent money laundering, terrorist financing, corruption, and fraud.
According to Wwft obligations, financial service providers are obliged to carry out customer inquiries completely before carrying out their activities. Customer investigation processes include,
- Customer screening before opening an account for a customer.
- Monitoring the customer-business relationship
- Researching the source of funds used in a transaction
- Preparing a Suspicious Activity Report for any unusual transaction and reporting it to the Financial Intelligence Unit.
AML Regulations in Netherlands
The Netherlands has comprehensive laws to prevent money laundering and terrorist financing. The Dutch Financial Intelligence unit is one of the critical regulators for Anti-Money Laundering in the Netherlands. All financial institutions are obliged to report risky and unusual activities to the Dutch Financial Intelligence unit.
Also, the Dutch Ministry of Finance has issued the General Directive on the implementation of the Money Laundering and the Financing Terrorism Act (Wwft) and the Sanctions Act (Sw).
AML Solutions For Netherlands
Sanction Scanner is an AML Compliance Software. It helps businesses take measures against money laundering and terrorist financing by providing solutions for their needs. Companies operating under AML obligation in the Netherlands can meet their AML needs quickly and easily with Sanction Scanner solutions.