UBO register update the Netherlands
The Netherlands adopted new legislation for the Ultimate Beneficial Owner-register (hereafter the UBO-register). As a consequence legal entities are required to keep up to date the information on their respective UBO (s) as of 8 July 2020. The obligation for all legal entities to register the UBO’s with the chamber of commerce will become effective 27 September 2020.
The background of the UBO register is European Union’s 4th Anti-Money Laundering Directive which is now implemented into national law. The purpose of the legislation is to increase the prevention of money-laundering and terrorism financing.
The following details of the UBO need to be registered with the Chamber of Commerce:
- BSN/Social Security Number, Fiscal Identification Number, name, date-, month-, year-, place- and country of birth, nationality, current address, state of residence and kind of control and/or percentage of economic interest (class 25%-50%, 50%-75% or 75%-100%).
- Documentation supporting the verification of the identity of the UBO.
- Documentation supporting the nature and economic interest held by the UBO and supporting the conclusion that the individual qualifies as UBO.
Note that if no UBO can be found based on the above mentioned criteria, the individual that holds the position of senior managing official will be confirmed to be the UBO.
It is a legal obligation to provide the necessary UBO-information. Non-compliance will be a criminal offence, which can lead to substantial fines. As of implementation of the legislation there is a timeframe of 18 months to complete the registration.
Impact on your business:
Not all the information in the UBO-register is accessible to the public, only the following UBO-details: name, place of birth, month of birth, year of birth, state of residence, nationality and kind of control and/or percentage of economic interest (class 25%-50%, 50%-75% or 75%-100%). Retrieving information will be against a fee. Rules will be implemented regarding the identity of the party requesting the information and the frequency that the information is searched for.
Other registered information is only accessible for competent authorities, regulators, EU financial intelligence units, public notary and certain financial institutions, i.e. banks.
Steps to take:
We will closely monitor the setting up of UBO-register and the exact requirements on how to complete the registration process. When this is clear AMS will directly inform you on these requirements and how we can assist with being compliant with the new legislation.
If you have any questions regarding the UBO-register or the requested information, please do not hesitate to contact our Dutch office +31 20 708 5770 or reach out to your regular AMS contact.