On 6 October 2022, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a news item in which the regulator comments on transactions taking place between crypto service providers registered in the Netherlands and crypto service providers based outside of the EU which are not registered (non-EU crypto service providers). DNB indicates that when a crypto service provider registered in the Netherlands enters into such a transaction, for example when buying/selling cryptos from/to non-EU crypto service providers as part of its own inventory management, is exposed to an integrity risk because these non-EU parties may not be acting in compliance with European anti-money laundering rules.
In this context, DNB indicates that if a registered crypto service provider (Party A) conducts transactions with a non-EU crypto service provider (Party B), it must include a relevant risk scenario in the integrity risk analysis it is required to prepare pursuant to the Act on the prevention of money laundering and terrorist financing (Wet ter voorkoming van witwassen en financieren van terrorisme). DNB expects Party A to specify adequate risk-mitigating measures (for example ‘counterparty due diligence’), taking into account the inherently increased risk of money laundering/terrorist financing when doing business with a non-EU registered provider. In this scenario, DNB may check whether party A has adequately specified this risk in its integrity risk analysis, and whether it has implemented sufficient risk-mitigating measures. If DNB detects shortcomings in this regard, it will consider taking enforcement action.