This article was published in 2021. Laws, case law and regulatory guidance may have changed since then. Contact us for up to date advice.
Who does the Wwft (Dutch Anti-Money Laundering and Anti-Terrorist Financing Act) apply to? Which institutions are subject to the Wwft?
Within the Wwft, the concept of ‘institution’ determines to whom this act applies. The act distinguishes three main categories, namely:
- Banks,
- Other financial institutions and
- designated natural persons, legal entities or companies acting in the course of their professional activities.
The category “other financial institutions” includes the following institutions:
- Investment institution;
- Investment firm;
- Life insurance intermediary;
- Payment service agent;
- Payment service provider acting on behalf of a payment service provider licensed in another EU member state;
- Payment service provider;
- Electronic money institution;
- Undertaking for collective investment in transferable securities (UCITS);
- Institution other than a bank that nevertheless carries out banking activities;
- Life insurer;
- Safe deposit box rental company;
- Currency exchange institution.
The following have been designated as natural persons, legal entities or companies acting in the course of their professional activities to which the Wwft applies:
- Accountant,
- Lawyer,
- Tax adviser,
- Domicile provider,
- Buyer or seller of goods (excluding works of art),
- Buyer or seller of works of art,
- Intermediary in the purchase or sale of high-value goods,
- Estate agent,
- Notary,
- Pawnshop,
- Casino,
- Valuer,
- Trust office,
- Professional or commercial provider of services for exchanging between virtual currencies and fiat currencies,
- Professional or commercial provider of custodian wallets.
Customer due diligence
The institutions subject to the Wwft mentioned above must carry out customer due diligence. This means that the identity must be established and recorded before the transaction is carried out. So identification must take place not only at the first contact, but also in a lasting relationship and when carrying out certain occasional transactions. Once a client has been identified and he or she then returns regularly, the institution does not need to ask for proof of identity each time.