The EU’s fifth Anti Money Laundering Directive (AMLD5) urged the adjustment of the implementation rules of the Wwft (the Dutch Prevention of Money Laundering and Terrorist Financing Act)[1]. In this context, the Wwft has been amended accordingly. The new legislation has come into effect in the Netherlands on 21 May this year.

As highlighted in a previous article, this new legislation will directly influence the Know Your Customer (KYC) processes of not only financial institutions, but also crypto services providers, in the following 5 key ways:

  1. Scope extends to virtual currencies
  2. UBO registers will be publicly available
  3. Enhanced due diligence required for business relationships with high-risk third countries
  4. Electronic identification means must comply with eIDAS
  5. Obligation to monitor certain customer profiles more intensely

Do you want to know more about how this new legislation affects your organisation’s KYC processes and how you can design the process to be customer-friendly while remaining compliant? Check out our onboarding page. If you are a crypto services provider, read our latest blog for an extensive explanation of how these changes will impact you.

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