The AFM amended its guidance on the Money Laundering and Terrorist Financing Act in early 2013. Amendments to the Act include the addition of client identification procedures, and the strengthening of the duty to notify authorities of unusual transactions.
Client identification requirements have been tightened. New requirements stipulate that client representatives that are natural persons must be authorised to act as representatives and must have their identities verified. In addition, institutions must be able to identify a “strawman construction” and must take appropriate measures to determine whether natural persons are acting on their own behalf or on behalf of third parties.
In addition to the amendments on client identification, the time frame for the notification of unusual transactions is immediately, as opposed to the former 14-day time frame. The guidance also prescribes a duty to notify in cases where client notification has not yielded the desired outcome, and where there are indications of the client’s involvement in money laundering or the financing of terrorism. For more information about the Act, please consult the AFM’s website (available in Dutch only).
