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It is time for cryptocurrency companies in the Netherlands to register under the new Anti-Money Laundering (AML) rules

May 19, 2020

The deadline is here: On May 18, Dutch unregistered crypto companies could face fines if they fail to comply with the new Dutch Anti-Money Laundering Law (AML)., approved by the Dutch House of Lords on April 21.

According to the Money Laundering Directive, companies offering crypto for fiat or custody services should have registered for today. In contrast, those that only offer crypto-to-crypto services are excluded.

The Dutch bank (DNB), which is responsible for regulating financial activities in the Netherlands, is obliged to comply with the mandates of the Dutch government. However, you will not issue licenses to crypto companies. Instead, a paid registration is mandatory and costs up to 34,000 euros per year.

Creation of specific risk profiles with the new framework

It is time for cryptocurrency companies in the Netherlands to register under the new Anti-Money Laundering (AML) rules
It is time for cryptocurrency companies in the Netherlands to register under the new Anti-Money Laundering (AML) rules

Crypto companies, like their directors, will be under the supervision of regulators. According to the new legislation, these companies must therefore create risk profiles. and that they reinforce their “Know Your Customer” rules to assign each risk profile.

T.All transactions are continuously monitored and, if necessary, assigned to such risk profiles. In addition, transactions that are classified as “suspicious” should be reported to the Financial Intelligence Unit.

The DNB warned crypto companies not to use the new rule:

“If you have not submitted a draft application before the law comes into force, you will not be able to use the transitional provision and will therefore have to discontinue your current activities. If you carry out activities without being subject to the transitional provision.” This can affect the evaluation of your (subsequent) registration request. They also violate the rules and the DNB can take enforcement action. “

The use of EU AMLD5 remains controversial in the Netherlands

The central bank’s application of the European Union’s AML5 standard in the country has been discussed due to the cost of the new requirements for crypto companies.

Cointelegraph reported in April that these new compliance rates would be higher. than those paid by traditional trust and credit card companies.

Some exchanges have criticized the fact that the new legal framework will affect the privacy of cryptocurrency holders.

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