The Dutch Central Bank recently published its updated guidance on money laundering, terrorism financing and sanctions. The guidance, though not legally binding, explains key topics such as client due diligence and monitoring processes, clarifies DNB’s interpretation of the relevant laws and outlines what it expects of supervised companies regarding compliance. This 2014 guidance is highly relevant for institutions supervised by DNB as well as pension funds and other insurers subject to supervision under the Sanctions Act.
The Dutch Central Bank (DNB) first published its guidance on sanctions legislation to prevent money laundering and terrorism financing in 2011. This guidance was aimed at implementing recommendations of the Financial Action Task Force.
DNB issued its updated (second) version of the guidance in January 2014, following the changes in Dutch law which came into effect on 1 January 2013 (see also RCE newsletters of February 2013 and July 2012). These amendments mainly concern client audits and notification of unusual transactions. Another amendment the guidance addresses is the introduction of a transitional provision in the Act on the Prevention of Money Laundering and Terrorism Financing (Wwft). Under this provision, clients that are already identified or exempt from identification under the preceding statute are no longer required to be audited in accordance with the Wwft.
Together with the Ministry of Finance’s general guidance (in Dutch only), DNB’s 2014 guidance provides useful instructions from the authorities’ perspective on how companies should design compliance systems to meet statutory requirements. The 2014 guidance is highly relevant for institutions supervised by DNB, such as banks, life insurers, payment services providers and agents, electronic money and exchange institutions, trust offices, lease companies, and casinos, as well as pension funds and other insurers subject to supervision under the Sanctions Act.