General guidance on the Prevention of Money Laundering and Financing of Terrorism Act (Wwft)

The use of the financial system for laundering proceeds obtained from criminal activity damages the integrity, stability and reputation of the financial system and threatens its further development and the internal market. The same applies to the use of the financial sector to finance terrorist purposes.

In February 2011, a first version of the guidance document was prepared on the recommendation of the International Monetary Fund (IMF) to support the private sector in carrying out tasks in the area of preventing money laundering and terrorist financing. Legislation and regulations in this area are constantly evolving. In January 2014, the original guidance document was updated for the first time. The main reason for this was the implementation of the Third Anti-Money Laundering Directive. On July 25, 2018, the Fourth Anti-Money Laundering Directive Implementation Act entered into force, implementing the Fourth Anti-Money Laundering Directive1 in Dutch laws and regulations. As a result of this implementation, the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) and underlying regulations have been substantially amended in a number of respects. This necessitates an adaptation of the general guidance.

This European Anti-Money Laundering Directive aims to prevent, through the prescription of preventive measures, the laundering of money derived from crime and the use of funds or property for terrorist purposes, using the financial system. Money laundering and terrorist financing often take place in an international, cross-border context, so that measures taken only at the national level have too limited an effect. Similarly, regulation solely at the European Union level, has too limited an effect. That is why the legal framework to prevent money laundering and terrorist financing consists not only of (the implementation of) European directives, but also of international standards of the Financial Action Task Force (FATF).2 The recommendations and (non-legally binding) guidance of the FATF have also been included in this guideline.

This guidance document is not a legally binding document and does not replace laws and regulations. The purpose of this guideline is to assist supervised Wwft institutions in applying the legal obligations. The guideline covers the general aspects of the Wwft that apply to all Wwft institutions. The guidance should therefore be read in conjunction with the specific guidance published by the various supervisory authorities involved.

View: General guidance on the Prevention of Money Laundering and Financing of Terrorism Act (Wwft)

Source: Rijksoverheid