The transparency register in the 4th AML directive in the Netherlands

As of 27 September 2020, the law regarding implementation of the registration of UBOs of companies and other legal entities is in force. This law implements the obligation to centrally register information in respect of the UBOs of companies and other legal entities that are incorporated in the Netherlands.

Yes. 

As of 8 July 2020, companies and other legal entities have to collect information in respect of their UBOs and UBOs must provide the information. 

Yes. 

As of 8 July 2020, companies and other legal entities must collect information in respect of their UBOs and UBOs must provide the information. 

The legal entity.

Yes.

According to the law, exemptions are available for:

• a private company with limited liability or a public limited company, if subject to disclosure requirements as referred to in the Directive, or to regulations that are equivalent to the disclosure requirements in the Directive, including a wholly owned subsidiary of such a company;
• sole proprietorship;
• foreign legal entities, even if they have their headquarters or a branch in the Netherlands (unless they transfer the statutory seat to the Netherlands);
• associations for owners of apartments;
• associations with limited legal capacity that don't carry on a business;
• legal entities governed by public law, i.e. governmental organisations;
• other private law (historical) entities.

As of 27 September 2020, new companies or other legal entities must register UBO information upon registration in the Dutch Trade Register; existing entities have 18 months to register their UBOs.

If changes occur in respect of UBOs, the UBO register must be updated as well. This must be done within eight days after the change occurs.

There will be a dual sanction system of administrative and criminal enforcement.

Administrative enforcement will include a penalty or fine of a maximum of the fourth category.

Criminal enforcement can be divided into two categories. If the breach is committed intentionally, it is qualified as a crime and punishable by imprisonment not exceeding two years, community service or a fine of the fourth category. If the breach is committed unintentionally, it is qualified as an offence and punishable by imprisonment not exceeding six months, community service or a fine of the fourth category. In addition, other penalties can be imposed.

In the first instance, a separate register is provided that will be linked to the Dutch trade register, but the ultimate aim is for the UBO information to form an integral part of the trade register.

N/A