Deadline looms for Dutch companies to comply with Ultimate Beneficial Owners registration rules

Netherlands-based companies face hefty fines for late filing or non-compliance with new EU Anti Money Laundering regulations

Dutch companies face a fast-approaching deadline to comply with new Ultimate Beneficial Owners (UBO) registration rules or face hefty fines.

Regulators in the Netherlands are enforcing the fourth EU Anti Money Laundering Directive (AMLD) according to Dutch law.

The directive requires member states to keep a register providing insight into organisations’ UBOs. The aim is to ensure that money laundering and terrorist financing are not hidden behind legal entities.

In the Netherlands, the UBO register is part of the Trade Register. Dutch legal entities incorporated after 27 September 2020 have to record their UBOs with the register within one week of incorporation.

All Dutch legal entities existing on 27 September 2020 must register their UBOs before 27 March 2022. Failure to comply carries a €21,750 fine and a big risk of reputational damage.

As your partner in the Netherlands, Intertrust Group will help ensure your UBO information is filed at the right time. While we still have some months to meet the obligation to register the UBO(s) of your existing Dutch legal entity or entities, we will not postpone registrations to the last moment.

Dutch legal entities must act now for UBO registration

With governments and regulators across the world driving ever greater levels of transparency, regulatory requirements in the Netherlands are getting tougher. There are significant financial and reputational consequences for companies that fall foul of the regulators.

Do not underestimate the complexity of registering under UBO rules. Identifying and registering the Ultimate Beneficial Owners of a Dutch legal entity may sound straightforward, but it can prove challenging.

Multiple parties are often involved. For example, when a client is part of a loan deal they may be party to it, but not necessarily the actual UBO. As such, they might have no wish to appear on the register. It can take time to establish and agree on a legal entity’s UBO.

The process is complex, compulsory and often a joint effort – this is not just another compliance obligation that can be easily fixed. And each country has its own interpretation of the directive and deadlines.

Our clients may be based in Amsterdam but have interests in jurisdictions across the world. While the information is needed by law, we fully understand that clients are reluctant for their personal information to be stored in a database accessible to regulators anywhere in the world.

However, it doesn’t matter where you are based – each country has some variety of rules on the disclosure of beneficial owners. These rules currently apply to legal entities, and regulators have made clear that they will also apply to trusts from the beginning of November 2021.

How Intertrust Group can help you with the UBO and AMLD registration

Whenever Intertrust Group provides management services to your Dutch legal entity or entities, we will help ensure compliance and register the UBOs of your existing entity or entities before 27 March 2022.

In line with the ‘Wet toezicht trustkantoren 2018’ and ‘Wet ter voorkoming van witwassen en het financieren van terrorisme’, we have already collected information about our clients and related UBOs. If the information is required for the UBO register but isn’t sufficient or up to date, we will contact you to supplement or update it. If you have concerns or queries, contact us for more details.

How Intertrust Group can help in the Netherlands

Finding the right partner to help you navigate the complexity of Dutch compliance regulations can save time and money. We can help you understand the new legislation and provide the right processes and software to help you keep up.

We ensure smooth collaboration between our clients and key local specialists with extensive knowledge of local rules and regulators. Our teams support you and ensure you comply with the regulators.

Why Intertrust Group?

• Intertrust Group is a publicly listed company with more than 65 years’ experience providing world-class trust and corporate services to clients around the world
• Our 4,000 professionals work together across 30 jurisdictions to offer undisputed global reach, deep local knowledge and an extensive international network to help clients achieve their strategic goals
• Intertrust Group provides a wide range of financial and administrative services to clients operating and investing in the international business environment. We help companies expand globally, offering support with restructuring, outsourcing and further developments.