The deadline is here: On May 18, unregistered Dutch crypto firms could face penalties if they do not fall into line with the Netherlands’ new anti-money laundering (AML) laws, passed by the Dutch Upper House on April 21.

According to the Anti-Money Laundering Directive, companies offering crypto-to-fiat or custodial services should have registered by today. In contrast, those offering only crypto-to-crypto services are exempt.

The Dutch Bank (DNB), the body in charge of regulating financial activities in the Netherlands, will be obliged to comply with the mandates of the Dutch government. However, they will not issue licenses for crypto businesses. Instead, paid registration will be mandatory and cost up to €34,000 per year.

Establishing specific risk profiles with the new framework

The crypto firms will be under the supervision of regulatory authorities, as will their directors. Therefore, the new legislation requires these companies to establish risk profiles and to strengthen their Know-Your-Customer rules to assign each risk profile.

All transactions will be continuously monitored and reassigned to said risk profiles if necessary. Also, transactions deemed “suspicious” must be reported to the Financial Intelligence Unit.

The DNB warned crypto companies not to avail themselves of the new regulation:

“If you have not submitted a draft application prior to the entry into force of the law, you cannot make use of the transitional arrangement and you must, therefore, cease your existing activities. If you are active without being subject to the transitional arrangement, this may have an effect on the assessment of your (subsequent) registration application. You will also be in violation and DNB can take enforcement action.”

EU’s AMLD5 implementation remains controversial in the Netherlands

Implementation of the European Union’s AML5 in the country through the central bank has been the subject of discussion due to the cost that the new requirements entail for crypto firms.

Cointelegraph reported in April that these new compliance fees would be higher than those paid by traditional trust and credit card companies.

Some exchanges have criticized the fact that the new regulatory framework will sacrifice privacy of cryptocurrency holders.