New law concerning cryptocurrency in the Netherlands

31 januari 2020

Cryptocurrency providers are required to comply to certain protocols as due to amendments in the AML*- and CFT* legislation. De Nederlandsche Bank (DNB) is going to monitor if the providers are able to comply to all the requirements which are determined in the new law.

Which requirements do cryptocurrency providers need to comply to?

European legislators determined that the anonymous character of virtual currencies is susceptible for criminal activities. This was exactly the reason for the Dutch parlement to adopt a new law concerning the Fifth Anti-Money Laundering Directive (AMLD 5) and to change the AML-and CFT legislation.

The first step towards applying the AML into the cryptocurrency branch has been taken with the establishment of the new law. The approved new law contains a registration requirement for cryptocurrency providers. This law is applicable for everyone who is offering cryptocurrency via an organisation. 

 

How to comply to the law?

It’s clear that the AML and CFT for cryptocurrency providers was introduced in the Netherlands as of the 10th of January 2020. The consequence for organisations in this branch is that they have to implement an intern policy, whereby the risk on money laundering and financing of terrorism is going to be constrained.

 

As due to the new law cryptocurrency providers need to take the following into account:

  • Execution of a Know Your Customer (KYC) process. (identification and verification of the customer before the registration on their platform)
  • Monitoring the ‘trades’ which are executed on the platform.
  • Reporting the suspicious transactions to the Nederlandse Financial Intelligence Unit (NFID)

 

The new method

It’s obliged to ‘Know Your Customer’ and to gather information about the customer which can possibly be used by the authorities. The solutions of DataChecker have been approved by various financial institutions. One of our innovative solutions makes it convenient to check remotely within only a few steps. This new method is developed in accordance to comply to the current Dutch regulations.

 

                                                                                                                                                                           

 

Meet our specialist

My name is Tom Jansen and as a sales representative I’m responsible for the guidance of new- and existing customers during the onboarding process. As due to the new GDPR-regulations, processing data and the awareness is becoming more and more essential in every branch. This is exactly the reason for a lot of companies to cooperate with DataChecker to build a secure and convenient KYC*- and KYE* processes.

 

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Tom Jansen: writer of the blog (LinkedIn)

 

Excited to hear how we can be of value to your organisation?               

Don’t hesitate to contact us, we are eager to help you with the identification and verification process!

Tel: 085 – 40 12 65 0 

Mail: info@datachecker.nl  

 

*AML = Anti-Money Laundering

*CFT Counter Financing of Terrorism

*KYC = Know Your Customer

*CDD = Customer Due Diligence

*KYE = Know Your Employee