NEWSLETTER 23 April 2020

 

 

On April 17, the long anticipated proposal for the implementation of the Dutch UBO-register for trusts has been published for consultation. The proposal implements a public register in which the ultimate beneficial owners (UBO’s) of trusts similar entities, such as Dutch mutual funds, that have a connection to the Netherlands are recorded. This newsletter gives a high level overview of the proposed new law.

 

 

Background
Under the amended fourth anti-money laundering directive of the EU (the Directive), the Netherlands had to implement an UBO-register for trusts (the Trust Register) by 10 March 2020. Similar to the UBO-register for corporate and other legal entities, the Dutch implementation of the Trust Register has been delayed. As expected, the regime that is now published for consultation follows the Directive closely and contains no big surprises. It was announced earlier that Dutch mutual funds would fall within the scope of the Trust Register.

Which entities?
In the Dutch Trust Register, the UBO data of the following entities should be registered:

  • a trust with a trustee that lives or is located in the Netherlands;
  • a trust with a trustee that lives or is located outside the EU that enters into a business relationship or acquires real estate in the Netherlands. A business relationship is, for example, a durable engagement with a Dutch accountant or tax advisor;
  • a legal arrangement with a structure or function that is similar to a trust, if it has a trustee, or something equivalent to a trustee, that lives or is located in the Netherlands or that lives or is located outside the EU and enters into a business relationship or acquires real estate in the Netherlands;
  • a fund without legal personality that is used by participants to pool assets for mutual investment purposes. These funds have been specifically marked as legal arrangements with a structure or function that is similar to a trust. In the Netherlands, this is a Fonds voor Gemene Rekening (FGR). It is irrelevant whether the fund qualifies as tax transparent (besloten or closed), or opaque (open) for corporate income tax purposes

Where the term trust is used below, the information applies to legal arrangements with a structure or function that is similar to a trust, including the FGR, as well.

What information?
The Dutch Trust Register will be maintained by the Dutch Chamber of Commerce. The following information will be registered.

Publicly available information:

  • the name of the trust;
  • the type of trust;
  • the date and location of the creation of the trust;
  • the purpose of the creation of the trust;
  • the name of any person who qualifies as UBO of the trust;
  • the month and year in which the UBO was born;
  • the country of residence and citizenship of the UBO;
  • the nature and scope of the economic interest held by the UBO. The scope will be reflected in certain categories. These categories are published in a Decree.

Information that is not public, but only available to Financial Intelligence Units and other specific authorities:

  • the burgerservicenummer (BSN) or similar tax identification number of the UBO;
  • the day of birth and place of birth of the UBO;
  • the address of primary residence of the UBO;
  • documentation to substantiate the information that needs to be registered in the Trust Register.

Who qualifies as UBO?
The Directive gives a broad definition of the term UBO. For Dutch purposes, this definition is further clarified in the decree Uitvoeringsbesluit Wwft 2018. Under this decree, the following persons qualify as UBO:

  • the settlor(s) of the trust;
  • the trustee(s) of the trust;
  • the protector(s) of the trust (if any);
  • the beneficiaries or class of beneficiaries of the trust;
  • any other natural person exercising effective control of the trust by direct or indirect ownership or by other means.

Blocking public access to information?
Under the proposed law, and similar to the UBO-register for corporate and other legal entities, the UBO has only very limited means to protect his privacy. Upon request, if the UBO is a minor or otherwise legally incapable, or if the UBO is – in short – under protection from the police, the public access to certain information will be blocked.
 
Who needs to register and when?
The trustee has the primary responsibility to register the required information. The registration needs to be done within one week after the event that triggered the registration requirement has taken place. The trustee has the obligation that all information is complete, accurate and up to date. Trusts that have been created before the Trust Register was implemented need to register the information within 3 months after the implementation of the Trust Register. This period is substantially shorter than the 18 month transitional regime that applies to existing entities to register information in the UBO-register for corporate and other legal entities.

The UBO’s of a trust have the obligation to provide the trustee with any information that is necessary for the trustee to meet its registration requirements.

Competent authorities and persons that fall within the scope of the Dutch anti-money laundering act, such as accountants and tax advisors, have the obligation to notify the Chamber of Commerce if they have information that indicates that the public information in the Trust Register is inaccurate.

Next steps
Interested parties have to opportunity to provide input on the proposed law until 15 May 2020. It is the intention to offer the final proposed law to parliament in the second half of 2020.

 

 

About Arcagna

Arcagna is a tax boutique and notary office that is specialised in local and international tax advice to high net worth individuals and family businesses. Arcagna uses its thorough and broad tax knowledge as a starting point for creative but always practical solutions. These solutions are implemented from A to Z, both from a tax and a corporate law perspective. In international cases Arcagna employs its network of leading independent firms throughout the world.

 

Meer informatie

 

 

Disclaimer

Despite our precautions, it is possible that the information in this newsletter is inaccurate or incomplete. Arcagna B.V. is by no means responsible and liable for the information in this newsletter, or for any decisions or actions that have been made or takes based on this information.
 

 

Arcagna Amsterdam
Museumplein 5E & F
1071 DJ Amsterdam
T: +31 (0)20 305 0850
E: info@arcagna.com

Arcagna Rotterdam
Wilhelminaplein 1-40
3072 DE Rotterdam
T: +31 (0)10 313 4776
E:
info@arcagna.com

 

U kunt uw voorkeuren updaten of uitschrijven voor deze nieuwsbrief
 

Copyright © 2020 Arcagna, All rights reserved.
You receive this newsletter because you are a relation of Arcagna.