NETHERLANDS Law and Practice Contributed by: Johannes de Jong and Juliet de Graaf, Osborne Clarke N.V.
Beneficial Owner(s) (UBO), the individual(s) rep - resenting the customer and the purpose and nature of the business relationship. CDD is required when the bank enters into a business relationship with a customer or when it conducts an incidental transaction(s) amount - ing to EUR15,000 or more on behalf of the cus - tomer. The bank applies (i) regular; (ii) simpli - fied; or (iii) enhanced CDD, each with minimum requirements depending on the customer risks involved. Throughout the business relationship, the bank is obligated to conduct CDD reviews, typical - ly triggered periodically or based on specific events. Transaction monitoring Banks must monitor transactions within a busi - ness relationship to identify unusual activities by means of objective and subjective indicators as laid down in the Dutch AML Act. If a transaction meets certain criteria, it qualifies as unusual and must be promptly reported to the Financial Intel - ligence Unit Netherlands (FIU-NL). EBA Guidelines The EBA has published numerous guidelines on AML-CTF that are also relevant to Dutch-based banks. In these guidelines, the EBA addresses various topics, such as the onboarding of remote customers, the application of risk factors, and the roles and responsibilities of compliance officers. DNB AML-CFT Q&As and Good Practices The DNB has published Q&As and Good Prac - tices on AML-CTF. The Q&As provide interpreta - tions of legal standards, while the Good Prac - tices offer recommendations for compliance, though institutions may choose alternative
methods as long as they continue to meet legal requirements. AML-CFT Industry Baselines In consultation with DNB, the Dutch Banking Association ( De Nederlandse Vereniging van Banken , DBA) has developed various practi - cal principles for the risk-based application of the Dutch AML Act. Nearly all Dutch banks are members of the DBA. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) Dutch Deposit Guarantee Scheme The Dutch Deposit Guarantee Scheme (DGS) is laid down in Section 3.5.6 of the DFSA and the relevant regulations thereto. The DGS imple - ments the EU Directive 2014/49/EU on deposit guarantee schemes. The DGS regime is admin - istered by the DNB and the DGS funds are kept in the Deposit Guarantee Fund ( depositogaran- tiefonds , DGF), which is managed by the DNB. Since 2016, Dutch-licensed banks have been required to contribute to the DGF quarterly. These contributions are divided into collective and individualised components, with the DNB determining each bank’s contribution based on their deposit base and that of all banks com - bined. Supplementary contributions may be set if covered deposits increase. When the DNB has to repay depositors out of the DGF but the available funds in the DGF are not sufficient to finance the payments, extraordinary contribu - tions are levied. The DNB determines these contributions ex post and may ask banks for an advance payment if needed.
408 CHAMBERS.COM
Powered by FlippingBook