News 02/05/25

Annex to the Guideline Wwft and Sanctions Act 1977 for Crypto-assets service providers

Crypto-assets service providers (CASPs) have been required to comply with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) and the Sanction Act 1977. In addition, CASPs must comply with the Transfer of Funds Regulation (TFR). The Dutch Authority for the Financial Markets (AFM) has drafted an Annex for CASPs, complementary to the Guideline Wwft and Sanctions Act 1977 (Guideline). This Annex contains sector specific focus points for CASPs.

In short

CASPs are required to comply with the Wwft
Specific Annex to the Guideline Wwft and Sanctions Act 1977 for CASPs

CASPs are required to comply with the Wwft

As of February 4, 2025, CASPs qualify as ‘financial institution’ as defined in the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft). Compliance of CASPs with the Wwft is under our supervision. As Wwft-institution, CASPs have certain obligations in order to prevent money laundering and terrorist financing within the financial system. Pursuant to the Sanctiewet 1977 (Sanctions Act 1977) CASPs are obliged to take measures within their administrative organization and internal controls (AO/IC), in order to safeguard compliance with the provisions of applicable sanctions regulations.

In addition to the legal requirements of the Wwft and Sanctions Act, CASPs are also required to comply with the AML/CFT requirements following from the Transfer of Funds Regulation (TFR). For instance, CASPs must send certain transaction details along with each individual transfer of crypto-assets, also known as the ‘Travel Rule’. In addition, guidelines on the Travel Rule have been published by EBA.

Specific Annex to the Guideline Wwft and Sanctions Act 1977 for CASPs

In June 2024, we have published an update of the Guideline Wwft and Sanctions Act 1977. Following the TFR and changes to the Wwft with regard to CASPs, we have now drafted a specific Annex for CASPs. This Annex is intended to provide focus points for CASPs and explanatory notes on the AML/CFT requirements applicable to CASPs, including following from the TFR.

The CASPs can use the guideline to fulfil the legal obligations pursuant to the Wwft and Sanctions Act 1977, for example in the risk assessment, design of policies, procedures, group policies, execution of client investigation, reporting of unusual transactions and compliance with the Sanctions Act.