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Two months to go: as of 27 September 2020 Dutch legal entities will be under obligation to register their ultimate beneficial owners with the UBO register, but the UBO data collection has to begin now

The much-discussed UBO register which is aimed at prevention of money laundering and terrorist financing and as such derives from obligations set out in the 4th Anti-Money Laundering Directive (EU/2015/849) (as amended by the 5th Anti-Money Laundering Directive (EU/2018/843)) was approved by the Dutch Senate at the end of last month to be implemented in a two-step procedure:

Step 1: From 8 July 2020, relevant legal entities are obliged to collect and record the required data and documents on their UBOs whilst ensuring that such data and documents are adequate, accurate and current; foundations have an obligation to record distributions of 25% or less. Failure to comply with these obligations may lead to imposition of penalties.

Step 2: On 27 September 2020, the UBO register is expected to become operational (the register will be maintained by the Dutch Chamber of Commerce (KvK)). From that date existing legal entities will have 18 months to submit their UBO data to the register. Entities incorporated after 27 September 2020 will not be given the 18-month period and will be required to submit their UBO data upon registration with the Chamber of Commerce.

There is still some unclarity as to the identification process of persons who will be accessing the UBO Register, as well as the process on providing the UBOs with information on the number of times their data has been provided to third parties other than government organizations. Rules in this respect are expected to be announced soon.

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Want to know more about the UBO register and what your company’s obligations are?STRIK TAX|LEGAL is a boutique, multilingual consulting firm that advises on matters of Dutch corporate and tax law and is happy to assist its clients in navigating legal and tax landscape in the Netherlands.