Dutch Authority for the Financial Markets fine on Tradition Securities and Futures reduced to EUR 100,000 for failing to cooperate with AML and sanctions questionnaire

The Dutch Authority for the Financial Markets published an enforcement update on its administrative fine against Tradition Securities and Futures S.A. (TSAF) for breaching its statutory duty to cooperate by failing to submit requested questionnaires on compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) and the Sanctions Act 1977 (Sw) within the required timeframe. The Rotterdam District Court upheld the fine in principle but reduced the amount from EUR 500,000 to EUR 100,000. The AFM imposed the EUR 500,000 fine on 24 October 2023 on the French investment firm, which had a branch in the Netherlands. The information request related to the AFM’s periodic, sector-wide Wwft/Sw questionnaire used to support its risk-based approach to AML and sanctions supervision; TSAF’s non-submission prevented the firm from being included in the AFM’s risk analysis and hindered supervisory work. The AFM also noted TSAF had previously been warned for a similar breach, and highlighted that supervised institutions are legally required under Article 5:20 of the General Administrative Law Act to provide requested cooperation within a reasonable period. The AFM noted that its decision can no longer be brought before the courts for further review by interested parties.