AFM updates its AML guidelines

On 19 October 2020, the Dutch Authority for Financial Markets (Autoriteit Financiële Markten, AFM) has updated its guidelines on the Money Laundering and Terrorism Financing Prevention Act (Wet ter voorkoming van witwassen en financiering terrorisme, Wwft) and the Sanctions Act 1977 (Sanctiewet, Sw). The previous version of the guidelines dated from 25 July 2018, updated 2 January 2019.

In its news item (in Dutch only), the AFM explains that the drivers for the amendments are (i) the entry into force of the UBO register on 27 September and (ii) a need it observed for further guidance on interpreting certain open norms contained in the Wwft further to interviews and responses to its Wwft and Sw questionnaires. It is noted the amended guidelines deal with questions such as:

• What are the requirements a Wwft risk assessment and policy must comply with?
• To what extent do companies have to carry out research into the UBO of a listed company
• What does the AFM consider to be risk-based ongoing monitoring of clients and carried out transactions?
• When does a course qualify as education for the purposes of the Wwft?
• Which sanction lists should companies check and how often?

Furthermore, the amended guidelines are updated to incorporate new legislation such as legislation with respect the UBO register and related obligations for Wwft institutions.

The AFM notes that it expects market parties to take note of the amended guidelines and take these into account in daily practice.