Cabinet committed to further improving approach to money laundering

The government believes that the application of anti-money laundering regulations by non-financial Wwft institutions, such as civil-law notaries, and the supervision thereof must be improved. It also needs better insight into UBOs and must work on the transparency and feasibility of the Money Laundering and Terrorism Financing (Prevention) Act (Wwft) for small Wwft institutions. This is stated in the policy agenda for tackling money laundering that Minister Kaag of Finance and Minister Yeşilgöz-Zegerius of Justice and Security submitted to the House of Representatives on Friday.

Various (inter)national studies show that the Dutch approach to money laundering is well-founded. Therefore, according to the government, no fundamental revision of the approach is necessary. However, the government does see opportunities for further improvement in several areas. The government will address these issues, together with public and private parties, including the notarial profession. The policy agenda outlines the priorities and follow-up actions to achieve these improvements. Below is a selection relevant to the notarial profession.

Application and supervision
The government considers it important that anti-money laundering regulations and supervision of non-financial Wwft-compliant institutions, such as civil-law notaries, are effectively applied. For example, it is crucial that these institutions also screen their clients. In line with the recent Financial Action Task Force report, the government considers it necessary to take further steps in this regard, including improving the supervision of non-financial Wwft-compliant institutions. Rules for these institutions to comply with sanctions, including compliance monitoring and a reporting obligation, will also be introduced. Furthermore, measures will be implemented to improve data sharing.

UBOs
Sufficient transparency is a key prerequisite for preventing and combating money laundering through legal entities. A key component of transparency is insight into the ultimate beneficial owners (UBOs) behind legal entities. The government is committed to tightening and harmonizing the UBO definition and the obligations surrounding the identification and registration of UBOs within the EU. Completion of the UBO register for legal entities is also being promoted. The FATF recommendation regarding civil-law notaries registering UBOs in the UBO register is being further reviewed in consultation with, among others, the Royal Netherlands Bank (KNB).

Small Wwft institutions
Together with other public bodies, such as the Wwft supervisory authorities, we are exploring how small Wwft institutions can be effectively and appropriately informed to increase their awareness of the Wwft. During negotiations on new European anti-money laundering regulations, we will strive for a balanced relationship between the burden and feasibility for small Wwft institutions and the money laundering risks posed by their clients.