In our publication of February 2nd, 2018, we provided for an update on the introduction of the UBO register in the Netherlands, prescribed for by the 4th Anti-Money Laundering Directive (“AMLD4”) that applies to all Member States of the European Union. Reason for this update was, inter alia, the publication for consultation purposes by the Dutch government of a draft administrative measure (the “Administrative Measure”).
Amongst other issues, the Administrative Measure seeks to provide clarification regarding the definition of an ultimate beneficial owner (UBO) in respect of limited liability companies, foundations (including both private/family foundations as well as STAK’s) and various other legal entities/partnerships under Dutch law. On February 28th, 2018 the consultation was closed. The consultation resulted in a substantial amount of feedback, in furtherance of which the Dutch government published a revised draft of the Administrative Measure on April 6th, 2018.
Fifth Anti-Money Laundering Directive
Parallel to the implementation of AMLD4 in the Netherlands, a draft proposal to amend AMLD4 has been published by the European Commission on December 19th, 2017 (“AMLD5”). Last Thursday, the European Parliament adopted its position at first reading and instructed its President to forward its position to the European Council, the European Commission and the national parliaments. One expects that AMLD5 shall enter into effect by the end of this spring.
Impact of AMLD5 on implementation of UBO register in the Netherlands
Taking into account the impact of AMLD5 to the implementation of the UBO register, last Friday the Dutch Minister of Finance reported that the implementation of the initiated legislative process cannot continue unaltered because of these developments. Furthermore, AMLD5 provides for an extension of the implementation term in this respect up to 18 months after the entering into effect of AMLD5. For these reasons, the Dutch government chose to proceed with the revised draft of the Administrative Measure not earlier than after AMLD5 has entered into effect.
One expects the Dutch government shall submit draft legislation concerning the UBO register to Dutch parliament early 2019 so that qualifying entities will have to register its ultimate beneficial owner(s) early 2020 the latest.
If you would like to receive more information on the contents of the revised draft of the Administrative Measure or if you have any questions regarding the above, please do not hesitate to contact us.
In the wake of the developments concerning the COVID-19 / Coronavirus, BUREN has adjusted it’s policies to ensure that our services and responsiveness
Introduction On June 26, 2017 all European Union (“EU”) member states should have been compliant with the regulations prescribed in the 4th Anti-Money Laundering Directive (“AMLD4”).
On the 25th of April we were honored and proud to have welcomed a delegation of the Ministry of Justice headed