Implementation Act on the Prevention of Money Laundering and Terrorist Financing – Impact Analysis for Trust Offices
1. Introduction
The Implementation Act on the Prevention of Money Laundering and Terrorist Financing (Iwt) has significant consequences for trust offices in the Netherlands. In this article we will discuss the background and status of the Iwt and provide an overview of some of the key changes relevant to trust offices.
2. Background and Status of the Implementation Act
The Sixth Anti-Money Laundering Directive (hereinafter “AMLD6”) is part of a comprehensive legislative package approved by the European Council on 30 May 2024. It entered into force on 10 July 2024. The package also includes the Regulation establishing the Anti-Money Laundering Authority (AMLA) and the Anti-Money Laundering Regulation (AMLR).
AMLD6 aims to modernize and harmonize anti-money laundering laws within the European Union. It focuses on closing loopholes in the framework and strengthening cooperation between member states.
As a European regulation, the AMLR has direct effect and will apply from 10 July 2027. It replaces large parts of the current Dutch Money Laundering and Terrorist Financing (Prevention) Act (Wwft). This ensures uniform application of anti-money laundering rules across the EU.
The Implementation Act on the Prevention of Money Laundering and Terrorist Financing (Iwt) is a new Dutch law. Together with the AMLR, it will replace the Wwft on 10 July 2027. In doing so, it implements AMLD6.
The draft Iwt was open for public consultation from 4 July to 29 August 2025.During that period, 45 public responses were received from various organizations. The law will be further developed in an Implementation Decree, which will also be open for consultation. Both the Act and the EU regulations will take effect on 10 July 2027..
3. Harmonization and Supervision
European harmonization will lead to greater consistency in regulation across the EU. For trust offices operating across borders, this means clearer and more predictable
rules. At the same time, supervision will be intensified, with a larger role for the new European authority AMLA and enhanced cooperation between national regulators.
4. Impact of the Implementation Act on Trust Offices
The Iwt has a substantial impact on trust offices. Below are several important changes, along with explanations of their implications.
Abolition of National Rules
A large part of Chapter 4 of the Trust Offices Supervision Act 2018 (Wtt 2018) will be repealed. This is because obligations will now flow directly from the EU Anti-Money Laundering Regulation. Unlike previous directives that allowed minimum harmonization, the AMLR establishes maximum harmonization, meaning the Netherlands can no longer impose stricter national rules. Chapter 4 of the Wtt, which governs client due diligence, is one of the most critical parts of the current legislation.
Enhanced Due Diligence measures
Despite the repeal of national provisions, the trust sector will remain subject to enhanced client due diligence requirements. The Netherlands is using a member state option under Article 34 of the AMLR that will require providers of trust and corporate services to always apply enhanced due diligence. This is due to the high inherent money laundering risks associated with the sector, as evidenced by National Risk Assessments and other studies.
Registration requirement for providers of domiciliation services
A new development is the registration requirement for domicile provider; 1entities that only offer a postal address, registered office, or administrative address. While such services were not previously regarded as independent trust services under the Wtt 2018, they now fall within the AMLR’s scope. The registration requirement, under the Minister of Finance, aims to better map risks and prevent the circumvention of trust services.
Companies have been circumventing the Wtt 2018, by artificially dividing their activities to avoid the licensing requirement of De Nederlandsche Bank (DNB).
Ultimate Beneficial Owners (UBOs)
The AMLR introduces an important change in how ultimate beneficial owners (UBOs) are identified. The key change is that control must now be assessed independently and in parallel with ownership interest.
The ownership threshold is being lowered from “more than 25%” to “25% or more” of shares or voting rights, thereby bringing additional stakeholders under the definition.
If no UBO can be identified after exhausting all options, the regulation specifies that there is no UBO. Instead of registering a “pseudo-UBO,” the details of senior managing officials must be recorded. The definition of senior management is also broader than under current legislation.
Retention of Specific National Requirements
Although large parts of the Wtt will be repealed as explained earlier in this article, several key elements from the Wtt 2018 will remain in place, including:
– Licensing requirements.
– Fit and proper assessment (integrity and reliability of managers).
– Requirements for sound and controlled business operations.
– The prohibition on tax advice and acting as a conduit company.
These aspects fall outside the AMLR’s scope and may therefore continue nationally. Trust offices must also maintain particular vigilance regarding fiscal integrity risks.
Thus, while the Implementation Act simplifies the framework through harmonization and the elimination of duplicate regulation, trust offices remain subject to strict requirements due to the sector’s inherently high integrity risks.
Preparing for Upcoming Changes
The forthcoming changes will affect the operations of trust offices, making early preparation essential. Offices should assess what measures are needed to comply with the revised legal framework, including identifying which policies and procedures require updates. An effective response involves the following steps:
1. Conduct an impact analysis
2. Develop an implementation plan
3. Adjust policies and procedures
4. Provide training and communication
5. Implement technological support where necessary
6. Evaluate and perform periodic reviews
By systematically executing these steps, trust offices can ensure continued compliance even after the Iwt takes effect.
Would you like to learn more about how to effectively prepare your office for these upcoming changes? Compliance Champs has extensive knowledge, experience, and expertise to provide advice and support during implementation. Contact us for a free introductory consultation.
Please reach out to us on: info@compliancechamps.com
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