For two decades, there has been a call for a more risk-based approach to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT). Although the Dutch AML/CFT Act (Wet ter voorkoming van witwassen en financieren van terrorisme, Wwft) permits such an approach, supervisory enforcements measures over the past years illustrate that implementing a Risk-Based Approach (RBA) within AML/CFT measures is far from straightforward. Collaborative efforts and recent (draft) guidance provided by the Dutch central bank (De Nederlandsche Bank, DNB) and the Dutch banking association (Nederlandse Vereniging van Banken, NVB) articulate the principles underpinning the RBA, aiming to enhance the effectiveness of the financial sector's response to AML/CFT challenges. However, with developments in the EU AML/CFT framework, the extent to which an RBA can be sustained remains an open question.
This article seeks to explore the development of the RBA in AML/CFT compliance within the Netherlands, highlighting the collaborative efforts between supervisors and financial institutions and the strategic shifts in guidance. This article will also look to the future of the RBA in light of developments in the EU AML/CFT framework.