Credit companies, money transfer offices, and other similar institutions
Credit companies, money transfer offices, and other similar institutions are obliged to report unusual transactions to FIU-the Netherlands. This is provided for in the Money Laundering and Terrorist Financing (Prevention) Act (Wwft BES). You are required to report both completed transactions and transactions that have not yet been completed (intended transactions). This way you contribute to the fight against money laundering, predicate offences and terrorist financing.
Money transfer office: a party whose business it is to execute money transactions for the benefit of or at the request of third parties, or to perform activities aimed at effecting such transactions.
Money transactions:
a. exchanging coins or banknotes
b. paying out coins or banknotes upon presentation of a credit card or against submission of cheques or other securities
c. receiving funds or monetary assets in the context of a money transfer to make them available or have them made available to a third party elsewhere, whether or not in the same form, or paying or making available funds or monetary assets that have been made available elsewhere, whether or not in the same form, all this insofar as the money transfer is an independent service
d. carrying out other related activities to be designated by order in council.
Investment company: a legal entity that solicits or has obtained funds or other property for collective investment in order for participants to share in the proceeds of investments.
Matters included in the activities of Credit Institutions, Money Transfer Offices, and other similar institutions., under the Wwft-BES are:
Taking custody of securities, banknotes, coins, currency notes, precious metals and other valuables
Opening an account on which a balance in money, securities, precious metals or other valuables may be held
Letting a safe-deposit box
Making a payment in connection with the cashing of coupons or similar documents of bonds or similar securities
Crediting or debiting, or causing to be credited or debited, an account on which a balance in money, securities, precious metals or other currencies may be held
Performing money transactions within the meaning of the BES Financial Markets Act
Extending loans
Granting credit in the form of financial leasing
Granting guarantees and providing sureties
Dealing in: 1°. Money market instruments including cheques, bills of exchange, certificates of deposit
2°. Currencies
3°. Financial futures and options
4°. Swaps and similar financing instruments; or
5°. Securities
Participating in securities issues and providing services in that connection
Acting as an investment company within the meaning of the BES Financial Markets Act
Providing an investment service including: 1°. Receiving and transmitting client orders relating to financial instruments
2°. Executing orders in respect of financial instruments on behalf of those clients
3°. Managing individual assets;
Acting as an electronic money institution.
Exceptions:
The following are not considered a service as referred to above when making a payment in connection with the cashing of coupons or similar documents of bonds or similar securities:
a. Receiving monies or monetary values in connection with a premium payment under an insurance contract, for the purpose of making or causing such monies or monetary values to be made payable elsewhere, whether or not in the same form, to an institution that is permitted to conduct insurance business in Bonaire, Sint Eustatius and Saba pursuant to the BES Financial Markets Act;
b. Paying or making funds or monetary values payable in connection with a payment under an insurance contract, after such funds or monetary values have been made available elsewhere, whether or not in the same form, by an institution permitted to conduct insurance business in Bonaire, Sint Eustatius and Saba under the BES Financial Markets Act.
When do I report a transaction?
You are required by law to be alert to the transactions and actions of your customers and to report unusual transactions. As a Credit company, money transfer office, or other similar institution, you know what is usual in your sector. Therefore, you are in the best position to assess whether a transaction is unusual and may be related to money laundering, predicate offences, or terrorist financing. That underlines the importance of your professional judgment.
There are transactions that you should always report, regardless of the circumstances. These are transactions that meet the objective indicators. An overview of all the indicators that help you to assess transactions is given below. In addition, the general guidelines of the Ministry of Finance and the Ministry of Justice and Security and the Good practice Wwft BES of De Nederlandsche Bank (DNB) provide pointers on complying with the law. DNB is your supervisor and monitors your compliance with your obligations under the Wwft BES.
What indicators help me to assess transactions?
There are 7 indicators that may apply to Credit companies, money transfer offices, or other similar institutions. They will help you determine whether you should file a report with FIU-the Netherlands. You must always report transactions that meet the objective indicator. For the subjective indicator, it is particularly important that you assess whether a transaction is unusual.
The literal description of the indicators is given below. Use the codes in front of the indicators when reporting an unusual transaction. If your report is based on a subjective indicator, it is important to include a detailed description of the transaction and explain why you suspect money laundering or terrorist financing.
Services referred to in sections a to d, g, i and p to w of Schedule A to the Act.
XSubjectief01 - "A transaction that the service provider has reason to believe may be related to money laundering or terrorist financing."
XObjectief01 – " It is logical that transactions reported to the police or the Public Prosecution Service in connection with money laundering or terrorist financing should also be reported to the Financial Intelligence Unit; after all, there is an assumption that these transactions may be related to money laundering or terrorist financing."
XObjectief02 - "A non-cash transaction for an amount above USD 250,000."
XObjectief03 - "A cash transaction for an amount above USD 11,000."
XObjectief04 - "A cash deposit for an amount of USD 11,000 or more in favour of a credit card or a prepaid payment instrument (prepaid card)."
XObjectief05 - "The use of a credit card or prepaid payment instrument (prepaid card) in connection with a transaction for an amount of USD 11,000 or more."
XObjectief06 - "A transfer of money for an amount of USD 2,000 or more, unless it concerns a transfer of money by a service provider that has entrusted the settlement of the transfer of money to another service provider to which the obligation to report, as referred to in Section 3.5(1) of the Act, also applies."
Do you believe that a completed or intended transaction meets one or more of these indicators? If so, you are legally obliged to report it to us. Reports based on the subjective indicator may, for example, concern customers who refuse to identify themselves.
What happens to an unusual transaction?
An institution that has reported an unusual transaction receives an automatic message, i.e. an acknowledgement of receipt. This is important in connection with indemnification. We will investigate this unusual transaction. If we declare the transaction suspicious after investigating it, it is made available to investigative, intelligence and security services. They conduct a further investigation based on their own priorities.