Prevention of Money Laundering and Terrorist Financing – Compliance with the Sanctions Act
Money laundering, the financing of terrorism and violations of sanctions regulations pose a major threat to the integrity of the financial sector. The Dutch Authority for the Financial Markets (AFM) considers supervision of the prevention and combating of money laundering and terrorist financing, as well as supervision of compliance with sanctions regulations, to be one of its core tasks.
Financial institutions as gatekeepers of the financial system
Financial institutions serve as the first line of defense against financial‐economic crime because of their gatekeeper role. They play an essential role in keeping the financial system safe. The AFM monitors whether certain financial institutions fulfil this gatekeeper role adequately.
These firms must ensure that their products and services are not used to facilitate money laundering, terrorist financing, or transactions by individuals, entities, or groups subject to sanctions. This requires continuous monitoring and effective risk management throughout the entire business relationship with their clients. Financial institutions are legally obliged to conduct customer due diligence, report unusual transactions, and exclude sanctioned persons, entities, and groups. The AFM conducts risk-based supervision of these obligations.
In case of any discrepancy or possible misinterpretation of the information provided on the English version of the webpages, the Dutch version shall prevail and be considered authoritative.