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Delay of Fifth anti-money laundering Directive implementation

26 February 2020
Banking & Finance - Corporate Law - Notarial practice

On 21 February 2020 the Dutch Secretary of Finance (minister van Financiën) has sent a letter to the Dutch Senate (Eerste Kamer) regarding the following legislative proposals which are pending with the Dutch Senate (the Letter):

  • Implementation act amendments Fourth anti-money laundering Directive (Implementatiewet wijziging vierde anti-witwasrichtlijn) (Implementation Act AML5);
  • Implementation act registration ultimate beneficial owners of legal entities (Implementatiewet registratie uiteindelijk belanghebbenden van vennootschappen en andere juridische entiteiten) (Implementation Act UBO); and
  • Act referral portal for banking information (Wet verwijzingsportaal bankgegevens).

Legislative proposals are still pending

These three legislative proposals all concern the implementation of the Fifth anti-money laundering Directive (Directive (EU) 2018/843) (AML5). Although the deadline for the implementation of the Implementation Act AML5 and Implementation Act UBO was 10 January 2020, these legislative proposals are still pending with the Dutch Senate. The delay of these legislative proposals was caused by additional questions posed by the Dutch Senate in relation to both legislative proposals and due to the fact that the committee for Finance of the Dutch Senate ruled on 18 February 2020 that further assessment and consideration is needed (for the notification (in Dutch) regarding the Implementation Act AML5 click here, for the notification (in Dutch) regarding the Implementation Act UBO click here). Further additional written questions will be posed in relation to the Implementation Act AML5. In relation to the Implementation Act UBO, it is being contemplated to request the Dutch Council of State (Raad van State) for further information.

Letter of the Dutch Secretary of Finance

In the Letter, the Dutch Secretary of Finance states that the Netherlands has already received a notice of default from the European Commission in relation to the late implementation of the AML5. The Dutch Secretary of Finance requests the Dutch Senate to swiftly process the Implementation Act AML5 and the Implementation Act UBO, and – if needed – to do so separately, in order to comply with the European implementation obligations as soon as possible. Should the Dutch Senate decide that it is indeed necessary to request the Dutch Council of State for further information, the Dutch Secretary of Finance requests the Dutch Senate to request the Dutch Council of State to process this request swiftly.

Please do not hesitate to contact our Banking & Finance team if you have any questions regarding (the implications of) the Letter or the respective legislative proposals.