Eerlijk Bieden last week became the first software party in the Netherlands to roll out the automated Wwft check . As a result, enforcing the Wwft for brokers has now become a piece of cake. With the help of this blog, we are happy to share more about why this is so important.
What does the Wwft mean for the broker?
The Wwft, also known as The Money Laundering and Terrorist Financing (Prevention) Act, has been in effect in the Netherlands since 2008. The purpose of the Wwft is to oversee the control of an integer financial system with all actors in the chain. In order to comply with the law, certain parties such as brokers and notaries must conduct a so-called client due diligence.
In client due diligence, the broker must establish the client's identity and make certain risk assessments. For example, a risk assessment can be made based on a statement about the origin of funds. If a client cannot provide a good explanation of, for example, the client's own funds, the broker must label this as a "high risk.
The webinar below from broker association VBO focuses on the practical implementation of the Wwft for the broker.
First to have Wwft check automated for brokers
Using advanced person screening and a standardized questionnaire, the broker receives unambiguous advice on a transaction. As a result, the broker never again has to guess on a subjective basis whether or not a transaction can go through. A reasoned go, or no-go, follows at the end of the process.
All the broker himself has to do is assess the file on the basis of the information supplied on the basis of a manual. The result is a clear and auditable report that can be submitted to the FIU if necessary.
What is checked for the Wwft?
To prevent fraud and undermining, all those involved in the process are adequately screened. This includes the following checks:
- Sanctions against the person or organization;
- Control of a politically prominent person;
- Adverse media;
- Checking with law enforcement agencies;
- Monitoring with financial regulators;
- Check in insolvency records;
- Check in the receivership and guardianship registers;
- Control of disqualified drivers;
- Check for geographic risk.
Importance to the industry
And it is much needed too! Various studies and news articles unfortunately show that compliance with the Wwft in the brokerage industry is still lagging far behind, with all its consequences. This will rapidly dilute the intended effect of the Wwft - in a sector that is already highly sensitive to money laundering and fraud.
Special partnership
By automating the Wwft for real estate agents, Eerlijk Bieden we hope to help prevent fraud and abuse within the real estate industry. To tackle this problem, we have enlisted the help of our new partner SCOPE Fintech Solutions. This party has specialized in KYC and Compliance solutions for years.
Eerlijk Bieden Founder Lourens Pel is pleased with the new partnership: "We are always very critical when entering into new collaborations. Because we highly value quality and ease of use, we are by default already looking for a party that carries the same values. After the very first sessions, this was fortunately confirmed. Ultimately, the intensive cooperation led to a first in the Netherlands: the automation of the Wwft check. I think we can both be incredibly proud of that and that it forms the basis for many more new innovations in the industry."
Instant testing for all brokers
Are you a broker curious about the possibilities of the Wwft for the broker, the digital purchase agreement, or simply our bidding software. Create a free demo account right away!
