On 17 February 2020, the Dutch government provided answers to the questions and comments on the draft law implementing the fifth European Anti-Money-Laundering Directive (AMLD V) which were expressed by different political groups such as the PvdA Group, the PVV group, the SP group and the ChristenUnie Group.
01 Apr 2020
Topics of concern were among others the treatment of crypto assets services providers, the scope of the law and the potential costs and efforts that might result from the draft law for the financial sector.
The government now clarified among others that:
- It was decided in the Netherlands to limit the implementation of AMLD V to the provisions of the directive and to not include the more stringent requirements of the new FATF standards;
- Trust offices are considered pre-eminently capable of conducting research on their customers and of assessing when a transaction must be reported as unusual to the Dutch FIU as they have direct contact with the customer before they enter into a business relationship as well as a continuous view of the customer;
- The extension of the scope of suspicious transaction reporting will indeed increase the workload of the FIU and thus require additional funds (which have already been allocated to the FIU in the budget plan from 2021 onward);
- The inclusion on crypto-services providers into the scope of the AML Law will lead to additional supervision costs which will be charged to the newly supervised entities;
- The Netherlands are committed to removing legal barriers to data sharing to ensure a successful implementation of the AMLD V implementation act;
- A registration obligation for virtual currencies services providers was included in the draft law;
The DNB was chosen as supervisor for virtual asset services providers as it has broad experience with AML supervision of various institutions;
- There is no European "passport" system for providing virtual currency related services in the Netherlands to ensure that effective supervision can take place; and that
- The European Commission, member states as well as the FATF will evaluate the effectiveness of AMLD V.
This article was originally published in the February edition of REGWATCH. Read the full edition covering the following jurisdictions:
- European Union
- Hong Kong
- United Kingdom