Consultation to amend Dutch AML laws

NL Law

On 2 December 2019, the Dutch Minister of Finance and Minister of Justice and Security published a consultation containing plans to amend Dutch AML laws and regulations. A short summary of these plans is set out below. For more information on the broader plans of the Dutch government to combat money laundering, we refer to our previous newsletters of 1 July 2019, 17 October 2019 and 15 November 2019.

The legislative proposal contains three measures:

  1. A ban on cash transactions of EUR 3,000 or more for traders in high value goods. The current threshold is set at EUR 10,000 for such traders. The Dutch Ministers wish to bring the Dutch rules in line with the rules in neighbouring countries. This ban would also mean that traders in high value goods will not have to perform customer due diligence in the future.
  2. Information exchange with respect to transaction monitoring amongst institutions subject to Dutch AML rules.
  3. Cooperation and information exchange amongst institutions subject to Dutch AML rules, e.g., sharing client files. Also, institutions will be required – in case of enhanced customer due diligence – to perform research with respect to requests of the client for similar services at other institutions. This obligation already exists for trust offices.

Since especially measures (ii) and (iii) above may result in sharing personal data with other parties, the explanation to the plans sets out how the plans are compliant with GDPR. The consultation period expires on 14 January 2020.

The consultation does not mention the proposed effective date of the new rules. However, an earlier publication of the Dutch Ministers indicated 2021.