High demand for speedy onboarding
Not only law firms and banks are subject to the AML legislation; compliance is also a crucial part of daily operations for investment funds. Within RegLab, the Funds x Sales team focuses specifically on risk capital and private wealth in the Benelux region.
This field differs significantly from, for example, legal practice. Investment funds tend to approach AML processes from a commercial and efficiency-driven perspective, where speed and ease of use during client onboarding are key priorities.
To align with this approach, we have designed our application to be intuitive and efficient for both junior professionals and experienced specialists in the investment funds sector. As a result, compliance becomes an integrated part of the onboarding process rather than an obstacle.
AML should remain a priority
Day-to-day operations already demand considerable attention, which can cause AML compliance to slip down the priority list. Nevertheless, it is vital for investment firms to have a solid understanding of the core principles of the AML legislation.
This is particularly important when preparing for a visit from the regulator. Insufficient knowledge or incomplete processes can lead to unpleasant surprises, such as substantial fines or additional supervisory measures.
RegLab supports organisations in preparing for regulatory visits by reviewing the key AML principles together. Our experts have in-depth knowledge of the regulations and assist with:
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clarifying misinterpreted rules;
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resolving recurring compliance issues;
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preparing for discussions with supervisory authorities.
By paying regular attention to AML obligations, organisations save time, reduce stress and minimise risks in the long term.
💡 Did you know that regulatory visits occur more frequently in the Netherlands than in any other European country?
The guidelines relating to the Dutch Money Laundering and Terrorist Financing Prevention Act (Wwft) and the Sanctions Act 1977 provide detailed instructions on how to comply with these laws. It is therefore essential to stay well informed about their content and application.
To support this blog, the Funds x Sales team has prepared a concise summary of the key guidelines.
Dutch Money Laundering and Terrorist Financing Prevention Act (Wwft)
- Scope and definitions: The guidelines clarify the scope of the Wwft and provide definitions of key terms to help entities understand their obligations under the law.
- Customer due diligence (CDD): Detailed procedures are outlined for conducting customer due diligence, including identifying and verifying the identity of customers, assessing the nature and purpose of customer relationships, and monitoring transactions.
- Risk assessment: Entities are required to conduct risk assessments to identify and evaluate the risks of money laundering and terrorist financing associated with their business activities.
- Reporting obligations: Guidelines specify the types of transactions and activities that trigger reporting obligations, as well as the procedures for submitting suspicious transaction reports to the authorities.
- Record-keeping requirements: Detailed requirements are provided for maintaining records of customer transactions, CDD measures, and suspicious activity reports for a specified period.
- Internal controls and compliance programs: Guidelines may outline recommendations for establishing internal controls, policies, and procedures to ensure compliance with the Wwft.
Sanction Act of 1977 (Sanctiewet)
- Scope and purpose: The guidelines explain the purpose of the Sanctiewet and its role in implementing and enforcing international sanctions imposed by the Netherlands.
- Sanctions compliance: Entities are provided with guidance on complying with sanctions imposed by international bodies, including procedures for asset freezing, travel bans, and other restrictive measures.
- Notification requirements: Guidelines may outline requirements for notifying relevant authorities of transactions or activities that may be subject to sanctions.
- Risk management: Recommendations may be provided for assessing and managing the risks associated with sanctions violations, including conducting due diligence on counterparties and screening transactions against sanctions lists.
- Enforcement and penalties: Guidelines may outline the enforcement mechanisms and potential penalties for non-compliance with sanctions regulations.
Next up
In the next blog, we will meet Reglab's compliance team. In it, we will elaborate on issues they encounter and key highlights that clients have expressed their contentment with. Here, the questions will come from a more detailed interest about the law rather than practical purposes.
