The Dutch Minister of Finance recently informed the Dutch House of Representatives on the consequences of European legislative proposals on the prevention of money laundering and terrorist financing (hereinafter: the AML package) for the definition of UBO (ultimate beneficial owner). In the Netherlands, an individual is considered the UBO of a company or other legal entity if that person has more than 25% of the ownership or control. This means that an individual holding exactly 25% is not a UBO. Under the AML package, this will change, and an individual will be considered the UBO if the individual holds 25% or more of the ownership or control. So, exactly 25% of ownership or control will result in being a UBO. Although this may seem to be a minor change, it is expected that several companies and other legal entities will have to revise their registrations in the UBO register. Once known, we will inform you of the date on which this change will take effect. At present, the change is expected to enter into force in 2027.
Obligation of AML institution
As of 1 August 2024, AML institutions are allowed to contact their clients to obtain a certified extract from the UBO register if the AML institution itself does not have direct access to information from the UBO register. The client can request the extract from the UBO register held by the Dutch Chamber of Commerce. This is a transitional arrangement. As soon as an AML institution has access to the UBO register itself, it will have to consult the UBO register itself.
Clients were supposed to be able to request an extract from the UBO register as of 1 June 2024. However, the Dutch Chamber of Commerce has informed the Royal Dutch Association of Civil-law Notaries that AML institutions have not been able to obtain certified extracts from the UBO register from clients. Clients are not yet able to request this extract from the Dutch Chamber of Commerce.
If you have any questions about the UBO register, please contact Nick van Dijk or Remco Bosveld.
The Dutch Minister of Finance recently informed the Dutch House of Representatives on the consequences of European legislative proposals on the prevention of money laundering and terrorist financing (hereinafter: the AML package) for the definition of UBO (ultimate beneficial owner). In the Netherlands, an individual is considered the UBO of a company or other legal entity if that person has more than 25% of the ownership or control. This means that an individual holding exactly 25% is not a UBO. Under the AML package, this will change, and an individual will be considered the UBO if the individual holds 25% or more of the ownership or control. So, exactly 25% of ownership or control will result in being a UBO. Although this may seem to be a minor change, it is expected that several companies and other legal entities will have to revise their registrations in the UBO register. Once known, we will inform you of the date on which this change will take effect. At present, the change is expected to enter into force in 2027.
Obligation of AML institution
As of 1 August 2024, AML institutions are allowed to contact their clients to obtain a certified extract from the UBO register if the AML institution itself does not have direct access to information from the UBO register. The client can request the extract from the UBO register held by the Dutch Chamber of Commerce. This is a transitional arrangement. As soon as an AML institution has access to the UBO register itself, it will have to consult the UBO register itself.
Clients were supposed to be able to request an extract from the UBO register as of 1 June 2024. However, the Dutch Chamber of Commerce has informed the Royal Dutch Association of Civil-law Notaries that AML institutions have not been able to obtain certified extracts from the UBO register from clients. Clients are not yet able to request this extract from the Dutch Chamber of Commerce.
If you have any questions about the UBO register, please contact Nick van Dijk or Remco Bosveld.