BPOB and SCOPE FinTech are teaming up


BPOB and SCOPE FinTech are teaming up

Reading time: 2 min.

In short

The Industry Association for Private Research Agencies (in Dutch: De Branchevereniging voor Particuliere Onderzoeksbureaus or BPOB) and SCOPE FinTech Solutions are entering into a partnership. BPOB, which supervises the quality of the service provided by the affiliated detective agencies, has opted for the CDD On Demand solution to support its members with customer due diligence. Due to the collaboration, affiliated detective agencies can use BPOB at a discount to screen their clients.

CDD On Demand

The CDD On Demand solution supports the members of BPOB with the investigations by, for example, screening for negative media or prevention on sanction lists. CDD On Demand can be used as a resource for members of the BPOB.


The BPOB monitors the quality of the services provided by the affiliated detective agencies. Among other things, this involves checking whether the members comply with applicable laws and regulations and the Privacy Code of Conduct. The purpose of this is to protect the privacy interests of those involved and to guarantee the professionalism of the affiliated investigative agencies. The core tasks of the BPOB are:

  • Representing the ideal, material and social interests of private researchers;
  • Promoting expertise, operational working techniques and everything related thereto;
  • To encourage the sharing of knowledge and skills among colleagues in the country working in the field of private research to promote professional collaboration in an atmosphere of friendly collegiality.

The BPOB also represents the interests of Dutch private researchers towards the government and other institutions. The BPOB also functions as a national organization within a European context; the European society of detectives and worldwide within the World association of detectives.


SCOPE FinTech Solutions

SCOPE marketing technology b.v. was founded in 1987. A true pioneer in the Dutch ICT industry. “For more than thirty years, we have been helping the Dutch market with a professional CRM system, with a large, loyal customer base with a focus on the financial sector,” said Fred van 't Hoff, CEO of SCOPE FinTech Solutions.

An UBO investigation, how do you do that?

Gatekeeper AMLD

An UBO investigation, how do you do that?

Reading time: 3 min.

In short

Companies that must comply with the AMLD (Anti Money Laundering Directive) are also obliged to find out the ultimate beneficial owner of a company. The ultimate beneficial owner is often referred to as the Ultimate Beneficial Owner or UBO. Finding a UBO can be a complicated process, but fortunately there are several tools available in the CDD On Demand solution; the Chamber of Commerce UBO register and the UBO investigation.

The UBO register of the Chamber of Commerce

Since September 27, 2020, many companies are obliged to register the UBO(s) in the UBO register of the Dutch Chamber of Commerce. Companies established in 2020 or later must register immediately and for older companies there is a transitional arrangement of 18 months. Via the CDD On Demand solution you can search directly in the UBO register of the Chamber of Commerce without leaving the CDD On Demand application. You can easily search for a Chamber of Commerce number or company name. Searching the UBO register costs three credits.

Because not all companies have yet registered in the UBO register due to the transitional arrangement, it may be that the search option via the UBO register of the Chamber of Commerce sometimes does not offer a solution. To this end, SCOPE CDD On Demand also has a UBO study based on extracts from Chamber of Commerce extracts.

The UBO investigation based on extracts from the Chamber of Commerce

If you cannot find the UBO via the UBO register of the Chamber of Commerce, CDD On Demand also has the UBO research as a solution. Here too you search by Chamber of Commerce number or trade name. The independent UBO investigation then requests the Chamber of Commerce registration of the company concerned and also the legal entities that may be linked to this organization. This makes the entire company structure transparent. For example, a Holding may act as a director of a BV.

The UBO research based on Chamber of Commerce extracts will then automatically link these companies together and select the correct UBO or suspected UBO. If the investigation does not reveal a UBO, CDD On Demand indicates who would probably know who the UBO is.

Who is an Ultimate Beneficial Owner

According to the Dutch tax authorities, an UBO is anyone who:

  • has an interest of more than 25% in the capital of the legal entity;
  • Can exercise more than 25% of the voting rights in the general meeting;
  • Beneficiary is more than 25% of the assets of the legal entity.

It is therefore possible that a company has several UBOs. An UBO or UBOs can also be hidden behind a holding company. An investigation can therefore be complicated and take a lot of effort. All UBOs should be registered on March 27, 2022 of the companies that have a registration obligation (a number of company forms are excluded, for example an association of owners). Until then, the UBO register may not be complete. The UBO research based on Chamber of Commerce extracts do not depend on the UBO register to identify a UBO or possible UBO and can always be used.

Why should an UBO investigation be carried out?

An institution subject to AMLD is obliged to find out the identity of the UBO. The identity must be established in order to prevent (unconsciously) doing business with persons who have the wrong intention, for example money laundering, or hides behind a shadow company. Once the identity has been established, a compliance check must be performed. The compliance check indicates, among other things, whether someone is a PEP, is on sanction lists or is a (tax) resident of a high-risk country.

After the UBO check of CDD On Demand, an automatic compliance check can be performed of the UBO (s) found. Based on the compliance check, a PDF report is generated for the administration. After the compliance check, a person can be placed on the monitor list. On the monitor list, a person is checked daily and a warning is given if anything has changed.

Try CDD On Demand for free

Performing a UBO check via CDD On Demand is easy and saves a lot of valuable time. After performing a UBO check, you can immediately continue with other AMLD obligations, such as performing a compliance check and monitoring relationships.

Research into the support of the AMLD among brokers/appraisers and notaries ​


Research into the support for the AMLD among brokers / appraisers and notaries

Reading time: 3 min.

In short

Last February, the "Aanjaagteam Ondermijning" led by A.B. Hoogenboom presented the research report "Samen". The report has three subjects; the support, nature and extent of involvement in money laundering and the cooperation between the government, the notarial profession, brokerage and appraisers.

There has been an increase in support and the number of reports of suspicious transactions, only there is talk of a “rebellious involvement”. There are several developments that promote compliance, but there is also a certain rebellion. In principle, according to the research report, there are three reasons for complying with the AMLD: economic, social and normative reasons. Whereas the economic motive mainly revolves around a cost and benefit assessment, the social and normative motives are dominated by the sociological aspect. What is the corporate culture (normative)? And how much appreciation and prestige do people receive from customers, competitors and the environment (social)?

Rebellious involvement 

It appears that the sectors studied have their reservations about the AMLD. With the gatekeeper function, they fall between two stools. The rebellion is evident from various studies conducted by industry associations such as the Royal Notarial Association (KNB) and the Dutch Association of Estate Agents (NVM). Mainly the costs, the (increasing) administrative burden, such as the increasingly burdensome investigative duties, cause "rebellion". There is also disinterest, they experience a lack of feedback and there is doubt about the effect of the AMLD. Some real estate agents, notaries or appraisers also believe that the gatekeeper position has made them too much of an extension of the regulatory and enforcement agencies. 

It is also striking that in the investigations among the NVM real estate sector, the fear of reprisals was reported. If brokers (or others) comply with the reporting obligation, the name of the reporter is mentioned in the criminal file. By including the name of the reporter, they are afraid to report for fear of retaliation from the criminal circuit, which is why brokers / appraisers have been advocating for some time to anonymize the names of the reporters. 


Due to the "rebellious involvement", the AMLD is not always complied with, the report concludes. In 2017, 23 criminal investigations were conducted against estate agents and notaries. In addition, there were 361 court rulings on money laundering between April 2015 and August 2020, of which 33 related to notaries, 13 to estate agents and 2 to appraisers. 

Despite the criticism and periodic violations, support for the AMLD is increasing. The reports of unusual transactions are also increasing, with the reports about real estate playing the largest role; no fewer than 2000 of the 4,500 reports related to real estate. It is therefore problematic - from the perspective of the purpose of the AMLD - that there are many parties active in real estate that are not linked to a trade association. 

CDD On Demand was created to make it easier for parties subject to AMLD and gatekeepers to comply with risk assessment and customer due diligence. You can easily search for your client (legal entity or natural person) in the database and your client is automatically checked on various points such as PEP lists, Interpol lists and risk countries. At the end of the study, you can download a free PDF report for your records containing the findings of the study. CDD On Demand can also support you in finding the UBO and checking several people at the same time.

RE / MAX Netherlands & SCOPE FinTech Solutions join forces


RE / MAX Netherlands & SCOPE FinTech Solutions join forces

Reading time: 2 min.

In short

SCOPE FinTech Solutions, an expert in data quality, CRM software and at home in the world of financial and legal services since 1987, has partnered with RE / MAX Netherlands. This means that RE / MAX brokers are offered CDD On Demand, a particularly valuable tool for brokers to be able to meet obligations that fall under the AMLD in a simple and controllable manner.

RE/MAX offers CDD On Demand

Sinds het ontstaan in het jaar 1973, is RE/MAX gegroeid tot ’s werelds grootste franchiseorganisatie in de makelaardij. Momenteel werken er meer dan 130.000 makelaars in bijna 100 landen over de gehele wereld. RE/MAX verovert de wereld. Optimale dienstverlening door samenwerking en innovatie.

RE / MAX focuses on clients, brokers and office owners. RE / MAX provides real estate agents and office owners with the best tools, valuable support and training opportunities. One of these tools is now also the SCOPE FinTech CDD On Demand solution.

The system can be used immediately

CDD On Demand is available from an amount of € 1.50 per check and the system can be used immediately. No long-term contract is necessary and all clients can be processed automatically. CDD On Demand is basically the automated customer due diligence process of Customer Due Diligence.

"" In the context of the Wwft and the client due diligence, I wanted a CDD solution. After we have tested a number of providers, we now use the CDD On Demand tool from SCOPE FinTech Solutions. The tool works quickly, simply and efficiently. The report that the system generates is professional, clear, well-organized and meets the requirements set for us as brokers. In addition, you are not tied to contracts and it is an accessible way to generate the correct information. "- Dennis de Haan: CDD On Demand

Advantage for RE / MAX brokers

Because of the collaboration, affiliated brokers receive a ten percent discount through the affiliated RE / MAX offices. This also offers advantages for the clients of the brokers; because more than ever the real estate agent has time to buy or sell your home now that he knows that CDD On Demand is there.

The Netherlands Gaming Authority is adapting the AMLD guidelines for online gambling games


The Netherlands Gaming Authority is adapting the AMLD guidelines for online gambling games

Leestijd: 2 min.

In short

The Gaming Authority has tightened up the AMLD guidelines in connection with the entry into force of the Remote Games of Chance Act (in Dutch: Koa) on 1 April 2021. The Anti-Money Laundering Directive (hereinafter: AMLD) has been amended due to the entry into force of the new Act. Koa are also going to apply to providers of online gambling games.

Until recently, the provisions contained in the AMLD only applied to physical locations of games of chance of the Holland Casino. Due to the legalization of online games of chance, the Gaming Authority has amended the AMLD guidelines to provide online providers with handles in complying with the AMLD. The first version has been submitted for consultation at various parties.

As of April 1, permits can be applied for for online games of chance. If the license is granted, one falls under the supervision of the Gaming Authority. Since 2016, the Gaming Authority has been charged with enforcing the AMLD for their target group. The purpose of the AMLD is to prevent the use of the financial system for money laundering and terrorist financing. The prevention of money laundering is of great social importance for an effective fight against serious forms of crime. The government employs various professions and branches as "gatekeepers" by means of the AMLD. For example, these professions and industries report high-profile transactions to the authorities who may then decide to investigate the individual or company in question.

With online gambling providers, it is particularly important to keep an eye on unusual transactions and the turnover rate of the transactions. The AMLD is applied more strictly in online sports gambling games because there is also a chance of match fixing. A special unit has been set up within the Gaming Authority that monitors match fixing: Sports Betting Intelligence Unit, or SBIU. The SBIU can report possible match fixing in games of chance. Holders of a license for remote games of chance must report this to the SBIU. Land-based sports betting does not have to comply with the obligations of the AMLD, but does have an obligation to report to the SBIU.

A games of chance provider conducts a customer due diligence in the following cases:

  • When entering into a business relationship; The Gaming Authority assumes that a games of chance provider always enters into a business relationship with its players. A customer due diligence must therefore always be carried out, but only a registration of a player is not a business relationship. Before making a payment and participating in a game of chance, the provider must complete a customer due diligence. 1
  • If there are indications that the player is involved in money laundering;
  • If it doubts the correctness, completeness or topicality of previously obtained data from the player;
  • If the risk of involvement of an existing player in money laundering gives cause to do so;
  • If, given a player's state of residence, there is an increased risk of money laundering.

The customer due diligence consists of four steps. First, the identity is established and confirmed on the basis of an identity document. Subsequently, the games of chance provider must make a risk assessment of the player. The games of chance authority provides a number of risk factor-increasing. You perform a simplified, standard or enhanced customer due diligence on the basis of your risk assessment. The third step in customer due diligence is to continuously monitor the business relationship and the transactions that take place during that relationship. As a fourth step, if necessary, is an investigation into the source of the funds. You do this at an increased risk.

Small and medium-sized companies are also have judicial problems when they violate the AMLD


Small and medium-sized companies are also have judicial problems when they violate the AMLD

Leestijd: 4 min.

In short

We are often asked how strict and how often authorities check the compliance with the Anti-Money Laundering Directive (hereinafter: AMLD) at companies subjected to the AMLD. If we look at recent case law, we see that smaller companies of various sectors suffer considerable reputational damage for relatively minor violations. Often it concerns violations of art. 3, art. 8 and art. 16 of the Wwft (Dutch law). In other words a violation of; the (stricter) customer due diligence (Article 3 in conjunction with Article 8 Wwft) and the duty to report (Article 16 Wwft).


What does the AMLD expect from 'gatekeepers'?

With the introduction of the AMLD, some professional groups and sectors have been given a 'gatekeeper' function by the government. By gatekeeper is meant that institutions subject to the AMLD are the first "line" in the fight against money laundering and terrorist financing. The idea behind placing part of the responsibility with these institutions is that the government is far removed from situations where money laundering takes place. Money laundering usually takes place in everyday life, for example with the cash purchase of an expensive watch. It is impossible for the government to supervise this itself.

If we take the example of the cash purchase of an expensive watch, then the jeweler is the gatekeeper who reports to the authorities on the basis of the notification obligation of the AMLD. This notification gives the government insight into such situations where money laundering takes place.


Gatekeeper AMLD


In addition to the duty to report, customer due diligence is also important because hidden risks may emerge that were not visible in the first instance, for example that a customer is a (tax) resident of a high-risk country. The AMLD therefore assumes a risk-oriented approach. The gatekeepers assess the risk and, if necessary, call in the authorities.

The government is therefore dependent on the gatekeepers to conduct a thorough investigation and to make a report to the authorities when necessary. Failure to do so will create problems in the detection of money laundering. That is why the gatekeepers are also periodically checked by authorities. Supervision is fragmented; the Ministry of Finance and the Minister of Security and Justice are responsible for this supervision, but various authorities have been designated as supervisors. For example, the Dutch Bank (DNB), the Netherlands Authority for the Financial Markets (AFM) and the Financial Supervision Office (BFT) are responsible for supervision. For the full list click here .
* This paragraph applies to the supervision in the Netherlands

What happens in the practice?

Many gatekeepers are aware of their obligations, but not of the consequences if they fail to fulfill their obligations. Often no check has been carried out or they only know the examples of the ING and ABN AMRO . In practice, inspections do take place (and increasingly more frequent). We get examples of larger firms where a supervisory authority is calling to report that they will be checking client files in a week, but medium and smaller firms are also being checked. Two recent lawsuits are briefly detailed below:

Example 1: inattentive notary
Source 1

Industry: Notary
Type of law: civil law/disciplinary law
Offense: the Financial Supervision Office (BFT) found that the notary did not comply with the duty to investigate, the duty to refuse, the performance of a (stricter) customer due diligence and the duty to report with three files that contained risk indicators.
Judgment: order for legal costs compensation of € 3,500 in the first instance. On appeal, this conviction was upheld and the notary was given a measure of reprimand, a fine of € 3000 and the court ordered the notary to pay € 3,000 in costs of handling the complaint on appeal.

Example 2: criminal record for tax advisor
Source 2

Industry: Tax advisor
Type of law: criminal law
Offense: Three times purposely not reporting a transaction of € 15,000 or higher (totaling € 85,462.52) and three times purposely not performing a customer due diligence.
Judgment: the court considers it proven that the suspect has deliberately renounced the duty to report and perform a customer due diligence on several occasions while he was an indirect director of the company [x]. He is personally liable for this and sentenced to a fine of € 7,000 or 70 days in replacement detention.

What is striking about both cases are the violations. In both cases, the duty to report and the obligation to perform a (stricter) client due diligence according to the AMLD are violated, resulting in significant reputation damage.

Also worth mentioning are the different areas of law. Not only the supervision of compliance with the AMLD is fragmented, but also the method of enforcement. This Act is enforced under disciplinary, administrative and criminal law. Criminal enforcement is the last resort, which means that it is only used if no other means is suitable. This means that the use of criminal law is limited to those cases in which the duty to report is deliberately and in case of repetition , or where the duty to report is violated in order to achieve monetary gain. A deliberate violation of the duty to report is considered a criminal offense and can be punished by imprisonment of up to two years, community service or a fine of the fourth category. Because it is a crime, this also results in a criminal record. The second case shows that someone as a natural person was criminally convicted of violating the AMLD.

The measure of reprimand imposed on the notary also counts as a severe measure and has, among other things, done serious damage to reputation. In addition to the reputational damage, the notary in question was also obligated to pay a total of € 9,500.

Prevention is better than cure

These cases show that even three times - intentionally or unintentionally - overlooking suspicious files or transactions can be enough for far-reaching sanctions. The authorities have made anti-money laundering an increasing priority and increased the frequency of checks. As in many cases, prevention is better than cure. Systematically auditing all of your clients by conducting client screenings, placing them on a monitor list and complying with your duty to report will help you avoid such litigation and reputational damage. You do not have to worry about periodic checks.

To accelerate and automate these obligations, SCOPE FinTech Solutions has developed the CDD On Demand solution. CDD On Demand works as a web application, as an API or through customization for large users. Based on first and last name and date of birth or Chamber of Commerce number with a business client, your client will be shown on eleven different points. controlled that pose an increased risk. If your client has been checked on all points, you will receive a certified PDF report showing that you have fulfilled your obligation. If there is an increased risk, you are obliged to take additional steps and possibly report it to authorities. You can request ten free credits to experience the convenience of CDD On Demand yourself or you can read more about the extensive functionalities .

Source 1: Gerechtshof Amsterdam 26 juni 2020, ECLI:NL:GHAMS:2020:1550

Source 2: Rechtbank Amsterdam 6 juni 2019, ECLI:NL:RBAMS:2019:5975

Update 2021: AMLD for real estate agents


Update 2021: Brokers and the obligations imposed by the AMLD

Reading time: 3 min.

In short

The Wet ter voorkoming van witwassen en financieren van terrorisme (hierna: Wwft) is in het leven geroepen om te voorkomen dat het Europese financiële stelsel gebruikt wordt voor het witwassen van geld en de financiering van terrorisme. De richtlijnen van de Wwft verplichten verschillende branches binnen de financiële dienstverlening om hun klanten te identificeren, de afkomst van hun geld te achterhalen en om ongebruikelijke transacties te melden. Bovendien moeten zij een vereenvoudigd, standaard of verscherpt cliëntenonderzoek uitvoeren.

In this blog you can read more about six questions about compliance with the guidelines under the AMLD for brokers.

What are the most important changes to the AMLD since its introduction?

The AMLD came into effect on 1 August 2008 and is also referred to as the third anti-money laundering directive, because the AMLD is a combination of the Identification of Services Act (Wid) and the Disclosure of Unusual Transactions Act (Wet MOT).

The Dutch governement implemented the 4th Anti-Money Laundering Directive on 25 July 2018. The fourth anti-money laundering directive obliges all EU member states to keep a UBO register, which means that companies are obliged to register their ultimate owners and / or the persons who have control in the UBO register. The Dutch UBO register is included in the Trade Register of the Chamber of Commerce.

The most recent anti-money laundering directive was introduced in the AMLD on 21 May 2020. A few pertinent changes to the latest anti-money laundering directive include:

  • Virtual currencies are also covered by the AMLD: Two new institutions became subject to the Wwft with the introduction of the fifth anti-money laundering directive. Crypto exchange platforms and crypto custody wallets must now comply with the AMLD. Owners of crypto currency ATM machines also fall under the AMLD.
  • The objective indicator of third high-risk countries will lapse: the fourth anti-money laundering directive included an objective indicator for high-risk third countries and all transactions had to be reported to FIU-the Netherlands. This objective indicator has disappeared because it would create too much work. A subjective factor has replaced this. So it now depends on the nature of the transaction. 
  • Risk assessment becomes the guideline: Institutions subject to the AMLD must make a risk assessment before conducting a customer due diligence. Before entering into a business relationship, companies must make a risk assessment of a client and, on that basis, opt for a simplified, standard or enhanced client due diligence.

How do brokers have to deal with the AMLD?

Brokers who mediate in the purchase and sale of real estate are obliged according to the guidelines of the AMLD to perform a gatekeeper function and duty to report.

The gatekeeper function means that they make a risk assessment and, on the basis of this, perform an appropriate customer due diligence. This is usually a standard customer due diligence. This requires brokers to identify and verify all of their clients. It is also important for the reporting obligation to check whether your client is himself or family of a PEP (Politically Exposed Person).

If a broker wants to do a deal with a business, the broker is also obliged to map out the entire company structure and find out who the (Ultimate Beneficial Owners) UBOs are. In addition to identifying and verifying, brokers must map where the UBOs live and where the company is located.

If there is a higher risk of money laundering or terrorist financing, the institution will conduct more stringent customer due diligence.

Brokers and other companies subject to the AMLD provide the best protection against possible fines from regulators by means of stricter customer due diligence.


How does a broker comply with the notification requirement?

When a broker suspects an unusual transaction, the broker is obliged to make a report to the Financial Intelligence Unit Netherlands (FIU-Netherlands). It is also mandatory to report refused customers on the basis of the Wwft to report them to FIU-the Netherlands. If this is the case, the broker must also inform FIU-the Netherlands on the basis of which criteria the customer was refused.

Estate agents assess whether something is an unusual transaction on the basis of objective and subjective factors drawn up by FIU-the Netherlands.

Objective factors:

  • A cash transaction of an amount of € 10,000 or more. This can be paid to or through the institution in cash, with bearer checks, a prepaid payment instrument (prepaid card) or similar means of payment.
  • A transaction that is suspected to be related to money laundering or terrorist financing and which is reported to the Public Prosecution Service, must of course also be reported to the FIU.

Subjective factors:

  • A transaction where the institution has reason to believe that it may be related to money laundering or terrorist financing.

For a correct subjective assessment of transactions with persons or countries that entail an increased risk, FIU-the Netherlands refers you to the risk countries as designated by the CIE.

An example:

A potential customer wants to work with a real estate agent. Before the broker can actually get started with a potential customer, the broker is obliged to perform an identification and verification. The results make it clear that the potential customer is a close or relative of Politically Exposed Person (PEP). A stricter customer due diligence should be carried out on the basis of this risk indicator. With this, the broker fulfills his gatekeeper position. However, in order to comply with the notification requirement, a notification must also be made to FIU-the Netherlands. The broker is obliged to make a notification on the basis of a subjective indicator.

Which problem does SCOPE FinTech Solutions solve with the CDD On Demand solution?

The CDD On Demand solution from SCOPE FinTech Solutions is a solution that supports you in performing an extensive and traceable CDD check. With the help of SCOPE CDD On Demand you can screen your clients in a very simple and fast way. SCOPE CDD On Demand checks for the following points:

  • Politically exposed persons (PEP)
  • Law enforcement
  • Financial supervisors
  • Disqualified Director
  • Insolvency reports (International media)
  • Central Insolvency Register (Netherlands)
  • Current- and previous sanctions
  • Trustee and administration register (Netherlands)
  • Geographical risk
  • Adverse media

Wil u weten hoe de oplossing van SCOPE FinTech Solutions werkt? Wacht dan niet langer en neem een proefaccount. U ontvangt direct 2 gratis credits, waarmee u gelijk uw cliënten kan onderzoeken. Dek uw bedrijf in tegen boetes van financiële toezichthouders.

Better be safe than sorry!

Culpable money laundering, what is it?

Gate Keeper AMLD

Culpable money laundering, what is it?

Reading time: 3 min.

In short

Last week, ABN AMRO dominated the financial news because after the ING, they are also suspected by the Dutch Public Prosecution (in Dutch: Openbaar Ministerie/OM) of violating the Anti Money Laundering Directive (AMLD). The ABN AMRO is suspected of a special form of money laundering by the Public Prosecution but what is this form of money laundering? Note: this article is written based on Dutch law

Culpable money laundering: a legal consideration

In legal dogmatics it is often said that language is the most important instrument of a lawyer, but also for the legislator. We see this reflected in the legal texts of various offenses. Culpable money laundering, for example, is a more serious offense than the one for which ING reached a settlement with the Public Prosecution Service in 2018. ING has arranged due to serious negligence in preventing money laundering. The difference in the seriousness of the two different crimes is in the words “culpable” and “prevent”. Culpable money laundering means that a company helped with money laundering but that they were unaware that the money came from criminal activities even-though they should reasonably have known. ING, on the other hand, acted negligently in preventing money laundering, so they are not guilty of money laundering.

In addition, there is something else going on in criminal law with regard to guilt. Guilt has different meanings in criminal law; it can be an element or a component. If guilt is a component we call it culpa.

The build-up of a criminal offense (in Dutch criminal law)

A criminal offense is always made up of components and elements. Most offenses in Dutch criminal law assume some form of intent as a component. There are different forms of intent; dolus (intent) and culpa (guilt). If "guilt" or "intent" is mentioned in the description of the offense, this means that intentional or guilty action is a condition for punishment.

Culpa requires a degree of carelessness, negligence or lack of precaution. Characteristic in cases of culpa is that a suspect has not knowingly committed the prohibited act. He did not want it, but he was careless as a result of which the forbidden act came about.

Culpable money laundering is a form of money laundering for which culpa is required. In the Criminal Code, a distinction is made between three forms of money laundering:

  • Culpable money laundering (section 420quater Sr.): the suspect carried out money laundering activities when he should reasonably suspect that the object originated from any crime.
  • Deliberate money laundering (section 420bis Sr.): the suspect committed money laundering while knowing that the object originated from any crime. He may have known this from the start, or he may find out at a later date, if he then decides to proceed with the act, this constitutes intentional money laundering.
  • Habitual money laundering (section 420ter Sr.): This is repeating intentional money laundering. The suspect carried out money laundering on several occasions, knowing that the object originated from any crime. The difference in the forms of money laundering is therefore in the structure.

Culpable money laundering

Culpable money laundering (Section 420quater Sr.) will generally be the case if it could reasonably be suspected that the object originated (directly or indirectly) from any crime. Objects include all items and all property rights. It is clear from case law that it does not matter from what type of crime the objects originate in respect of which laundering takes place. It is sufficient if it is established that it cannot be anything other than that the object originated from any crime.

Case law also shows that the threshold for establishing origin is not very high; the lack of an adequate and verifiable explanation for the origin of the money and a number of details mean that money laundering can be declared proven.


The criminal investigation and the Anti-money laundering directive

Before a suspicion of money laundering arises, there must be a suspect. This can be a person or a company (section 51 paragraph 1 Sr.), but how does such a suspicion arise from the AMLD?

The suspect concept according to the Code of Criminal Procedure

In the Code of Criminal Procedure, section 27 the suspect concept. Paragraph 1 describes who is regarded as a suspect during the investigation phase. This is the person against whom a reasonable suspicion of guilt for any criminal offense arises from facts and circumstances. The facts and circumstances must give rise to an objectively determinable suspicion that a person or company is guilty of a criminal offense. For example, in the case of money laundering, someone wants to buy a car with € 30,000 in cash.

The AMLD has two approaches: the risk oriented approach and the principle based approach.

The risk-oriented approach means that companies subject to AMLD make an assessment themselves of the risks that a client entails. This is called the risk assessment. Based on the risk assessment, a choice is made for a type of customer due diligence: simplified, standard or enhanced. More attention will be paid to customer due diligence (more stringent) for services or clients that pose greater risks and less attention for services to clients or products that entail a lower risk. The principle-based approach means that mandatory law does not prescribe how companies subject to the AMLD must achieve something, but what must be achieved.

For the remainder of the article, we use financial institutions as an example of institutions subject to AMLD. However, it is important to know that there are that more companies are subjected to the AMLD.

Much of the responsibility for preventing money laundering rests with financial institutions. With the AMLD, the legislator has assumed that financial institutions organize their CDD in such a way that money laundering is prevented. If there are nevertheless unusual transactions, they have a duty to report. This is also referred to as the gatekeeper function.

Not compliant, so suspect?

If an unusual transaction occurs, financial institutions have a duty to report to FIU-the Netherlands, which can lead to a suspicion of money laundering. It can be argued that a financial institution that reports an unusual transaction to the FIU that leads to a suspicion of money laundering, at that moment itself has the means available that come from a crime. However, because they report it to the FIU, they are not themselves punishable.

The story changes when a financial institution fails to report an unusual transaction when it should have. In that case, they will not only not comply with the obligations under the AMLD, but - with a view to the above reasoning - a suspicion of (culpable) money laundering may also arise. After all, there is a situation in which a report should have taken place that could lead to a suspicion of having in hand objects originating from a crime. If not reported, the financial institution will have items in hand that may have originated from a crime and the financial institution may thus be able to launder those items itself.

This reasoning seems far-fetched, but from previous case law (settlement Wachovia) and now the case of the Public Prosecution Service against ABN AMRO, it appears that this reasoning is more plausible than it initially seems.


How do you avoid criminal liability?

The obvious question is, of course, how this criminal liability can be prevented. The answer is simple: structuring your CDD policy in such a way that the risks are properly assessed, the correct customer due diligence is carried out and there is insight into irregularities so that they can be reported. Although the answer is simple, in practice it appears to be quite an operation to set this up properly.

SCOPE FinTech Solutions has developed the CDD On Demand solution for this. With CDD On Demand, you can easily perform an extensive background check before moving on to entering into a business agreement with the relevant client. The compliance check checks the person or legal entity you have entered on various points, including international and national sanction and investigation lists such as Interpol. It also looks at, among other things, receivership and administration registers and countries at risk. You can read more about our extensive compliance check.


Source: mr. de Swart A.J.M. & mr. Verloop P.C. ‘Banken en schuldwitwassen’, Jaarboek Compliance 2011, Nieuwerkerk aan den IJssel: Gelling Publishing 2010, p. 231-240.

Customer Due Diligence (CDD) what does it entail?


Customer Due Diligence (CDD), what does it mean?

Reading time: 3 min.

In short

There are more and more vacancies on the internet with the request for a "CDD Analyst" or "compliance offer". But what does CDD actually mean? CDD stands for Customer Due Diligence. Customer Due Diligence is in fact part of a know-your-customer research. With a CDD investigation, for example, financial institutions investigate their clients and on that basis make a risk assessment. By properly conducting and applying the CDD investigation, a financial institution prevents them from being used for money laundering or fraud


CDD is often incorrectly referred to as a synonym for Know Your Customer (KYC) while CDD is a part of KYC. CDD is a legal obligation arising from the Anti Money Laundering Directive (hereinafter: AMLD). The AMLD is a fairly recent law that was introduced in the Netherlands in 2008. The AMLD has given certain professions and sectors a 'gatekeeper' function from the government to combat money laundering and fraud. They have an important role in this to pick up any signals as early as possible and to report any unusual transactions to FIU the Netherlands. Professions such as estate agents, notaries and lawyers are faced with this legal obligation. CDD is one of the first steps in the fight against money laundering and terrorist financing. Each institution determines its own CDD policy, but this policy must always be based on the AMLD.

How do you conduct a CDD research?

It is important to do a good CDD investigation so that companies know who they are doing business with and what risk the relationship entails. The first step is, of course, the identification and verification of a client. After this step, the risk inventory begins. Certain checks must be carried out to make a proper risk assessment, some of which are laid down by law. This includes finding out the Ultimate Benifical Owner (UBO) and checking the PEP and sanctions list. More extensive checks are also possible, such as taking country risk into account or checking the receivership and administration register. After all, the idea behind the Wwft is that you must make a risk assessment of your client. The more information companies have about the client, the better they can make a risk assessment.

Based on the risk assessment, companies can choose from three types of customer due diligence:

  • Simplified
  • Standard
  • Enhanced

A simplified customer due diligence is not common. There are no longer any standard cases designated by law for which a simplified customer due diligence is sufficient. Companies themselves will have to provide evidence that research has been carried out and that the client poses a sufficiently proven low risk. To this end, the European Parliament and Council has drawn up an annex with indicators that a potentially lower risk. The appendix often refers to listed companies and government institutions.

Companies will almost always have to conduct a standard due diligence. In a standard customer due diligence, a standard number of points are always recorded and checked:

  • The identity of the client must be established, checked and recorded;
  • The identity of the ultimate beneficial owner (UBO) must be determined, verified and recorded;
  • The purpose and nature of the transaction/order must be determined and recorded;
  • Checking whether a client is acting for himself or for another person;
  • If necessary: ​​determine whether a natural person representing the client is authorized to do so;
  • Constantly monitoring and controlling the client.

Finally, there is the enhanced due diligence. A company only carries out this in-depth investigation if the risk assessment reveals a high or increased risk. Increasing risk factors include:

  • The client is a politically exposed person (PEP), a relative of a PEP, or an associate of a PEP;
  • If the country where the client resides or is established has been designated as a risk country by the European Commission or FATF. Risk countries are countries with a higher risk of money laundering or terrorist financing;
  • If it concerns a transaction or business relationship with a higher risk of money laundering or financing of terrorism. An example of this is a crypto transaction.

The type of customer due diligence therefore depends on the risk assessment. The process of making a risk assessment is time consuming and intensive. SCOPE FinTech Solutions has developed the CDD On Demand to support companies in making the risk assessment and identifying the UBO. In addition, it is also possible to put clients on a monitor list. The clients on the monitor list are checked at eleven different points every day.

How do you fulfill your gatekeeper role with the AMLD check from CDD on Demand?


How do you fulfill your gatekeeper role with the Wwft check from CDD on Demand?

Reading time: 2 min.

In short

In 2008, the so-called AMLD was introduced in the Netherlands. AMLD stands for Anti Money Laundering Directive. It is a combination of two previously existing laws; the Identification of Services Act and the Disclosure of Unusual Transactions Act. The AMLD has a risk-oriented approach, which means that institutions subject to AMLD make a risk assessment of their clients. The main objective of the AMLD is to maintain integrity in the financial system, which includes preventing and combating money laundering and terrorist financing. Below you can read which steps to take with an AMLD check and why this law is important in the Dutch legal system.


The AMLD imposes the following obligations on sellers of goods, brokers in the purchase and sale of goods, brokers and brokers in real estate, appraisers of real estate, operators of pawnshops and domicile providers. By answering the questions, you will immediately know how to fulfill your gatekeeper position according to the guidelines of the AMLD.

How can Scope CDD On Demand support you and your company in performing your gatekeeper role?

CDD On Demand offers an online platform in which the Chamber of Commerce registrations of your client can be requested. You enter a company name with place of business, or the Chamber of Commerce number, and CDD On Demand takes over most of the work. Within one minute you will get an overview of the company structure, in which the CDD On Demand solution indicates;

  • which person is the UBO.
  • which person(s) might possibly be the UBO.
  • which person(s) can lead you to the UBO.

When you are in a meeting with a client, you can immediately verify the company structure with the help of CDD On Demand.