The third money laundering directive: implementation in the Netherlands
European Securities, September 2008, issue 44.
As of Friday, August 1, 2008, the Third Money Laundering Directive 2005/60/EEC, has been implemented in the Netherlands. To implement the Third Money Laundering Directive, the Act on the Prevention of Money Laundering and terrorist financing (Wet ter voorkoming van witwassen en financieren van terrorisme (Wwft)) entered into force. The entering into force of the Wwft has resulted in changes to the rules regarding customer due diligence.
The Third Money Laundering Directive envisions providing a framework that is more "risk based" than "principle based". This means that an institution is required to attain the object of the law, namely, the combating of money laundering and the prevention of financing of terrorism, but they are allowed a certain amount of discretion as to the manner in which they structure their policy in order to achieve the envisioned result. Institutions may adjust the degree of the investigation according to the type of client, relationship or transaction.
The entering into force of the Wwft provides institutions with greater opportunities to harmonise their identification policy on the concrete risks of getting involved in money laundering and the financing of terrorism within the institutions.
The Third Money Laundering Directive envisions providing a framework that is more "risk based" than "principle based". This means that an institution is required to attain the object of the law, namely, the combating of money laundering and the prevention of financing of terrorism, but they are allowed a certain amount of discretion as to the manner in which they structure their policy in order to achieve the envisioned result. Institutions may adjust the degree of the investigation according to the type of client, relationship or transaction.
The entering into force of the Wwft provides institutions with greater opportunities to harmonise their identification policy on the concrete risks of getting involved in money laundering and the financing of terrorism within the institutions.
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