Definition of Currency Exchange Transactions Under Wft 1:1

Base law

Wft 1:1
(Refers to an external site)

Factsheet

Read aloud

An undertaking can qualify as an exchange institution only if its intended activities constitute currency exchange transactions. A currency exchange transaction, as defined in Section 1:1 of the Financial Supervision Act (Wet financieel toezicht or Wft), includes:

Published: 16 May 2013

A - A money exchange transaction

This includes both the exchange of coins or banknotes of one currency for coins and banknotes of another currency and the exchange of coins or banknotes of a given currency for coins or banknotes of the same currency, for example the exchange of small for large denominations or vice versa.

B - Disbursement of coins or banknotes

The disbursement of coins or banknotes (in other words cash) on presentation of a credit card or in exchange for the handing over of a document issued by a payment service provider for the purpose of making funds available to a beneficiary (holder of the document), such as:

a paper cheque;

a bill of exchange;

a paper voucher;

a paper traveller's cheque; or

a paper money order.

Difference vis-à-vis payment services

Payment service providers and payment institutions, and the services provided by each of them (including money transmission or remittance) are differently defined in the Wft, and subject to different licence requirement than exchange institutions. Although payment institutions (i.e. authorised payment service providers) may under specific circumstances effect exchange transactions, the reverse does not apply: an authorised exchange institution may not perform payment services, such as money remittance.

Discover related articles

Factsheet

Integrity & sanctions

Market access

Exchange transaction

Share:

Share on LinkedIn

Share on X

Share on Facebook

Share via Email

Base law

Wft 1:1
(Refers to an external site)

Interesting articles

FATF warning lists – June 2021 update

20 October 2025

News item supervision

The Financial Action Task Force (FATF) released two documents, indicating jurisdictions with strategic deficiencies in their anti-money laundering and combating the financing of terrorism (AML/CFT) regimes.

Read more
FATF warning lists – June 2021 update

News item supervision

20 October 2025

FATF warning lists – March 2021 update

20 October 2025

News item supervision

Read more
FATF warning lists – March 2021 update

News item supervision

20 October 2025

Good Practices Politically Exposed Persons Wwft BES

11 July 2025

News item supervision

To assist service providers in Aruba, the BES islands, Curaçao, and Sint Maarten in complying with legal requirements, the Kingdom Supervisors AFM, CBA, CBCS, and DNB have developed a Good Practice.

Read more
Good Practices Politically Exposed Persons Wwft BES

News item supervision

11 July 2025

FATF warning lists – February 2023 update

07 March 2023

News item supervision

The Financial Action Task Force (FATF) released two documents, indicating jurisdictions with strategic deficiencies in their anti-money laundering and combating the financing of terrorism (AML/CFT) regimes.

Read more
FATF warning lists – February 2023 update

News item supervision

07 March 2023