Bill on implementation of UBO register available

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Bill on implementation of UBO register available

Consequences for financial institutions in the Netherlands

A bill on the ultimate beneficial owner (UBO) register is published for public consultation in the Netherlands (the “Bill”). We describe the most important consequences of the Bill for financial institutions that are subject to the Dutch Money Laundering and Terrorist Financing (Prevention) Act (in Dutch: “Wet ter voorkoming van witwassen en financiering van terrorisme”, or “Wwft”) in attached document.

UBO definition

Under the Bill, an ultimate beneficial owner is considered to be the natural person who is the ultimate owner or has a decisive vote in the respective legal entity or enterprise. Rules will be laid down through an order in council (in Dutch: “Algemene Maatregel van Bestuur”) on natural persons who will in any event be considered UBOs for each type of legal entity and enterprise in the Netherlands specifically. Unfortunately, the Dutch government has not yet published this information.
Financial institutions in the Netherlands should be aware that the UBO definition in the Bill is different from the UBO definition in the Wwft, which is broader:

  • the UBO definition in the Bill solely relates to enterprises and legal entities registered with the Dutch Trade Register, while the UBO definition in the Wwft also applies to other enterprises and legal entities that do not have to be registered with the Dutch Trade Register; and
  • the UBO definition in the Wwft also applies to the natural person for whose account a transaction will be conducted. As this part of the definition is not relevant for the UBO register, it is not included in the Bill’s UBO definition.

Financial institutions may have quite some difficulty in taking account of the different UBO definitions in their internal administrative accounts and policies.

Bill on implementation of UBO register available

More information on the consequences of the UBO register of financial institutions? Please, download the report

Do you want to know more on the UBO-register? Please contact Sebastiaan van Dugteren of Nienke Roetert Steenbruggen at +31 6 8201 4117

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