Civil-law notaries and lawyers are subject to the Wwft when they independently advise or assist in certain financial and business transactions, such as the purchase or sale of real estate, forming companies or a business acquisition. For that work they must know their clients and report unusual transactions to FIU-Nederland. For work relating to legal proceedings, the litigation exemption (procesvrijstelling) applies.
Legal professionals are attractive to criminals. A notarial deed or a lawyer at the table lends a transaction an air of reliability. That is why the Wwft treats notaries and lawyers as gatekeepers, while respecting their special role and professional secrecy.
When does the Wwft apply to you?
The Wwft applies to lawyers, civil-law notaries, associate notaries and junior notaries who independently advise or assist in:
- the purchase or sale of registered property, such as homes, commercial buildings and ships
- managing money, securities, precious metals or other assets
- forming or managing companies and legal entities, or organising the contributions needed for them
- the purchase or sale of shares or the acquisition of businesses
- tax work comparable to that of a tax adviser
- creating a mortgage on registered property
Anyone who acts in the name and on behalf of a client in a financial or real estate transaction also falls under the law. The same applies to other legal service providers who carry out this work. For notaries, this means that a large part of their practice falls under the Wwft: conveyances, mortgage deeds, incorporations and share transfers. For lawyers, it depends very much on the type of matter. See also Wwft check: are you Wwft-obliged?
The litigation exemption
The Wwft does not apply insofar as a lawyer or notary carries out work concerning:
- the determination of a client's legal position
- representation and defence in legal proceedings
- advice before, during and after legal proceedings
- advice on instituting or avoiding legal proceedings
If an assignment falls under this exemption, you do not need to carry out due diligence or report for that work. The exemption follows the work, not the client. If you also advise the same client on an acquisition or a real estate transaction, the Wwft does apply to that part. Assess this per file and record your reasoning.
Who supervises?
- Civil-law notaries: the Bureau Financieel Toezicht (BFT) supervises notaries, associate notaries and junior notaries.
- Lawyers: the local dean (deken) of the Netherlands Bar is the Wwft supervisor, supported by the national organisation for supervision of the legal profession (Landelijke Organisatie Toezicht Advocatuur).
Both supervisors can request files and take measures in the event of breaches. Read more in Wwft fines.
Red flags in legal practice
A red flag is not proof, but it is a reason to ask further questions and record your findings. Examples:
- Successive transactions. A property or shareholding is resold several times in a short period, with unexplained price differences.
- Unclear financing. The money comes from an unknown source, a third party or a private or foreign loan without clear terms.
- Complex structures. The client wants to set up a company, foundation or trust without a clear reason, or with a foreign party as director or shareholder.
- Use of your client account. Money comes in without a clear transaction, or the client asks you to pass money on to another party.
- Haste and changes. The client wants to complete very quickly, or the buyer, price or payer changes just before the deed.
- Cash. The client wants to pay part of a payment or your invoice in cash.
Where the risk is high, you carry out enhanced due diligence, for example for a PEP or an unclear UBO.
Reporting to FIU-Nederland
If you see an unusual transaction, you report it without delay and directly to FIU-Nederland. This also applies to lawyers: the report does not go through the dean. The list of indicators in the Wwft Implementing Decree 2018 sets out for both professions:
- 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.
For the report and for further information to FIU-Nederland, the statutory duty of confidentiality does not apply. A report made in good faith protects you against prosecution for money laundering based on that report and against liability for damage suffered by third parties. 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 What is an unusual transaction?
Practical tips
- Check every new matter against the Wwft. At intake, record whether the work falls under the Wwft or under the litigation exemption.
- Complete due diligence before the deed or first action. If you cannot complete customer due diligence, you do not provide the service.
- Follow the money. Check whether the money in your client account comes from the party that owes it.
- Keep your file. You keep due diligence data for five years after the end of the relationship or the transaction. See Wwft record-keeping obligation.
- Use your professional body's support. The KNB and the Netherlands Bar publish guidance; lawyers can also contact the Wwft Knowledge Centre of The Hague Bar Association.
From 10 July 2027 the European AMLR applies. Civil-law notaries and lawyers will remain subject to the anti-money laundering rules for this work. See AMLR 2027.