Accountants and tax advisers are subject to the Wwft when they practise their profession independently. This applies to external registered accountants, external accountant-administration consultants, tax advisers and parties that provide comparable services, such as many bookkeeping firms. They must know their clients, report unusual transactions to FIU-Nederland and keep their files.
Accountants and tax advisers look deep into their clients' finances. This means they notice sooner than others when money flows do not fit the business. That position is exactly what makes them gatekeepers under the Wwft.
When does the Wwft apply to you?
Article 1a of the Wwft lists the following groups:
- tax advisers who work independently, and anyone who independently and mainly carries out comparable activities, including through affiliated persons or companies
- external registered accountants and external accountant-administration consultants, including forensic accountancy
- parties that independently carry out activities comparable to those of an external accountant
What matters is what you do, not your title. A bookkeeping firm or tax consultant without a protected title can therefore fall under the law just as well. An employed accountant who works only internally for their employer is, as a rule, not covered. If you are unsure, see Wwft check: are you Wwft-obliged?
Who supervises?
The Bureau Financieel Toezicht (BFT), the Dutch Financial Supervision Office, supervises accountants, tax advisers and bookkeeping firms. The BFT works on a risk basis. It can request files, carry out investigations at your office and, in the event of breaches, impose a fine or an order subject to a penalty. More in Wwft fines.
Customer due diligence in practice
Before you carry out an assignment, you perform customer due diligence. You establish and verify the identity of the client and the UBO. You understand the purpose and nature of the relationship and check whether anyone involved is a PEP.
In an ongoing relationship, such as an annual compilation engagement or tax return service, you keep the file up to date. If the ownership structure or business model changes, you adjust your due diligence. Where the risk is high, you carry out enhanced due diligence, paying attention to the source of wealth and source of funds.
Red flags for accountants and tax advisers
A red flag is not proof, but it is a reason to ask further questions and record your findings. Examples:
- Structures without business logic. International companies, trusts or foundations for which the client gives no convincing reason.
- Unexplained turnover or cash. Cash turnover that does not fit the type of business, or large cash deposits.
- Loans from unknown parties. Loans from foreign or related parties without an agreement, interest or repayment.
- Invoices without services. Invoices for advice or services for which there is no evidence of delivery.
- Rapid changes. Directors, shareholders or UBOs change often or in quick succession.
- Pressure on the advice. The client asks for a structure that seems mainly aimed at concealing origin or ownership.
- Sanctions risks. Involvement of persons, companies or countries subject to sanctions.
Reporting to FIU-Nederland
If you see an unusual transaction, you report it to FIU-Nederland without delay. According to the list of indicators in the Wwft Implementing Decree 2018, this concerns:
- Subjective: a transaction where you have reason to assume that it may be connected with money laundering or terrorist financing.
- Objective: a transaction of € 10,000 or more paid to or through your firm in cash, with bearer cheques, a prepaid card or similar means of payment.
A report made in good faith cannot serve as the basis for prosecuting your firm for money laundering, and you are not liable for damage suffered by third parties as a result of the report. You may not tell the client that you have reported. You may, however, speak with the client to dissuade them from an unlawful act. More in Wwft reporting obligation and Reporting an unusual transaction.
The litigation exemption
The Wwft does not apply to tax advisers insofar as they carry out work concerning a client's legal position or legal proceedings. Think of handling objections and appeals, advice before, during and after proceedings, or advice on instituting or avoiding proceedings. For that work you do not need to carry out due diligence or report.
Note: this exemption does not mention external accountants. For accountants, the Wwft therefore also applies to work connected with a dispute. And for tax advisers, the exemption only covers the litigation-related part of the work. If you also prepare tax returns or give structuring advice, the normal obligations apply.
Record keeping
You keep the customer due diligence data for five years after the end of the relationship or after the transaction. You keep reports for five years after the report. See Wwft record-keeping obligation.
Practical tips
- Record a firm-wide risk assessment. Look at your client base, services, sectors and countries.
- Link due diligence to the engagement letter. No assignment without completed customer due diligence.
- Plan periodic reviews. The higher the risk, the more often you review the file.
- Record your doubts. Note what you saw, what you asked and why you did or did not report.
- Train the whole team. Assistants and payroll administrators also see transactions that may call for a report.
From 10 July 2027 the European AMLR applies. Accountants and tax advisers will remain subject to the anti-money laundering rules. See AMLR 2027.