Sanctions Act: the importance of it

Mandatory periodic check

Periodic checks are mandatory under the Sanctions Act. It is therefore important to define a policy. For example, when checking clients' identity, you should find out who the ultimate beneficial owner (UBO) of a business relationship is. You should then check whether there are any sanctions against him. You can check this using the sanction lists. You also find out whether this person has received any negative publicity.

Who is supervising the Sanctions Act?

This role is reserved for the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM). They proceed according to the Regulation on Supervision of the Sanctions Act 1977. The Dutch Central Bank mainly assesses whether the measures that have been taken are also sufficient. You must immediately inform the DNB about your checks.

What sanctions should you consider?

• If a client turns out to be suspicious, various sanctions can be imposed. The sanctions regulations can be found on the websites of the United Nations, the European Union, and the national government. Sanctions include:

• freezing assets and funds.
• a ban on making financial resources available and
• a ban on or restriction of the provision of financial services.

RegLab for complying with the Sanctions Act

Do you also spend a lot of time on a Know Your Customer and Customer Due Diligence policy to comply with AML requirements and the Sanctions Act? Despite the frustrations they may generate, the KYC principles are becoming increasingly important. RegLab helps organizations to quickly, safely, and easily comply with the Know your Customer policy laws and regulations.