The current Dutch Anti-Money Laundering and Counter-Terrorist Financing Act (Wwft) will be replaced in the coming years by new European anti-money laundering regulations. This AML package consists of various pieces of legislation, including AMLR, AMLD6, and AMLAR.
In the run-up to the full implementation of the AML package, we will keep you informed of important topics. In this thematic article, we will discuss the scope: which entities will fall under the AML package, what the differences are compared to the current law, and what this will mean in practice.
The scope is defined in the AMLR. One of the biggest changes is the expansion of obligations to sectors and entities that were not previously covered by the Wwft. At the same time, entities currently subject to the Wwft will also fall under the scope of the AMLR. As a result, more institutions within the financial sector will be subject to strict anti-money laundering measures and reporting obligations. This includes, among others, crypto-asset service providers (CASPs), crowdfunding service providers, art dealers, and luxury goods providers exceeding certain transaction thresholds, insofar as the Wwft was not yet applicable to them.
The scope of the AMLR also extends to institutions outside the financial sector. For example, under certain conditions, football agents, professional football clubs, and gambling service providers will be considered obliged entities subject to reporting obligations.
With this expansion, the EU aims for a harmonised approach to combat money laundering and terrorist financing more effectively and to improve oversight of suspicious activities. This appears to be a necessary step. The handling of large (cash) financial flows makes other industries outside financial services vulnerable to the risk of being misused for money laundering. By adding them to the list of obliged entities, they can contribute to detecting suspicious activities.
Due to the AMLR, more organisations will need to prepare for the compliance obligations included in the AML package. Some entities already subject to the Wwft will have to adjust their existing policies, procedures, and operations to comply with the changes introduced by the AML package. For other organisations, it may mean that they need to establish an entirely new compliance structure in a timely manner.
As of 10 July 2024, the AMLR and AMLD6 have entered into force. The majority of the provisions in the AMLR and AMLD6 will apply from 1 July 2027. Additionally, the regulation establishing the European AML/CFT authority (AMLAR) entered into force on 25 June 2024 and will be largely applicable from 1 July 2025.
The AMLA (EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism) will also take on a more active role. One of AMLA’s responsibilities will be to develop guidelines and technical regulatory standards that will provide further clarity on the application and implementation of the AMLR and AMLD6.
In the coming period, we will continue to closely monitor developments and keep you informedvia our website and monthly newsletter. You can subscribe to our newsletter here:
If you have any questions in the meantime, please do not hesitate to contact us.
