The Dutch Central Bank (DNB) recently published new draft guidelines on the application of the Anti-Money Laundering and Counter Terrorism Financing Act and Sanctions Act. The draft guidelines incorporate some 'good practices' and thereby provide some welcome clarification for gatekeepers under the AML/CTF Act.
The changes predominately concern risk minimization through the application of risk management processes and procedures. DNB prescribes several new processes that financial institutions will have to implement to minimize risk. For example, institutions will now be explicitly required to provide as many different training courses as is required for each specific function in an organization. These courses will also 'regularly' have to be evaluated and the participation in the courses by employees will have to be adequately monitored and registered.
The draft guidelines do not provide much new guidance on the correct application of the anti money laundering provisions by financial institutions in specific cases. They do state some factors that will be deemed 'unacceptable risks', but it will ultimately still be for the financial institution itself to determine if the risks incurred warrant a termination of the financial services provided in a specific situation. In this sense, a financial institution will still be judge, jury and executioner.
The draft guidelines are open for consultation up to 16 September 2019 via this link: toezicht.dnb.nl