Asset managers see their customers getting younger and younger

Asset managers see their customers getting younger and younger

Reading time: 3 min.

In short

The greatest intergenerational inheritance ever is on the way and this is extremely beneficial for our millennials. The millennial, often the son or daughter of baby boomers and roughly born between 1980 and 2000. They are also called stubborn, overzealous, narcissistic and selfish, but due to rising personal incomes and inheritance they are becoming increasingly wealthy. Asset managers see their customers getting younger and are preparing for the new customer of today, the millennial.

It is a fact that a group of people in their twenties and thirties will soon be inheriting, inheriting, or have already inherited. Parents die or want to help by transferring their wealth to their children at a stage in which it contributes more than at the time of inheritance. Another characteristic of this group is that they are very enterprising. Their increasing equity is often invested in own companies or invested. Most investors are over 45 years old, but more and more asset managers see younger people in their thirties with a predicament. It is therefore important that they keep pace with this age shift.

Not just the age, there are other characteristics of the new customer compared to the baby boomers. There is a need for much more intensive contact. Not only do they have face-to-face contact, but contact with customers is also increasingly taking place via digital means of communication. On the other hand, when investing, responsibility is increasingly shifting to the asset manager. Millennials find out a lot of information themselves in advance, via the internet for example, and know exactly what they want. They leave the investment itself to the asset manager and so the client is often less actively involved in investing than the client to which asset managers were used to. The role of the traditional asset manager is changing, but it remains important at crucial decision moments.

Millennials are the first generation to grow up with the internet and with the use of technology they are (better than previous generations) able to convert their acquired knowledge into assets. Whether this is through business or through investment. The motivation is different, millennials are less concerned with securing the future and more concerned with enriching their current lives.

With our KYC solution, the asset manager is able to connect seamlessly with these digitized and entrepreneurial millennials. Paperwork is practically outdated and the digital filling in and maintenance of data is increasingly becoming the norm. With our SCOPE Client Portal, asset managers can develop a risk profile and investment plan together with the client. Data can be easily entered and maintained online. The millennial likes to be informed and transparency about knowledge and data is important for this. Dual access in the client portal, dual access, makes maintaining the client profile even easier. Both the employees and the client can look at the same data, so that this transparency can be guaranteed.

Do you want more information about the SCOPE Client portal? Please contact us. Fill in the contact for, send an e-mail to info@scope.nl or call us +31 (0) 23 517 9200.

Sources:

Slegers, M. (2021, January 12). Largest ever transfer of money between generations is coming. Retrieved January 13, 2021, from https://fd.nl/achtergrond/1367727/millennials-worden-snel-rijker-mede-dankzij-de-babyboomers

 

Money laundering using raw materials is increasingly popular

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Money laundering using raw materials is increasingly popular

Reading time: 4 min

In short

The Fiscal Intelligence and Investigation Service (Fiod The Netherlands) has released its annual report of 2020 on January 11th. In 2020, 900 inquiries were completed. 319 of these inquiries came as a request from other countries.

Many of these investigations led to successful collaborations between domestic and foreign investigation services. Especially the large investigations into fraud, money laundering and corruption require good cooperation between several parties, both nationally and internationally. Collaborations with other countries are increasingly important. The report showed that more and more criminals are moving abroad for money laundering. Dubai, Hong Kong and Singapore important places for the Fiod when it comes to money laundering, but Africa has recently also been included in this list.

Much criminal money is invested in raw materials in Africa, such as potatoes, gold and diamonds. It is now estimated that around 150 million euros worth of agricultural products have been exported in recent years. This phenomenon is called trade based money laundering. The criminal cash is invested in the commodities, which are then exported and sold abroad. In this way, the revenues seem to come from fair trade.

 

We were always the club of follow the money, but that principle is outdated," Says Fiod CEO Langerak. "Nowadays we also hunt for things like cryptocurrency, and therefore also for goods.

 

As long as there is the opportunity for criminals to "invest" their cash, the market will remain infected with crime money. In addition, the current criminal is a lot smarter and more cunning than before. Criminal money was then mainly used to live a lavish life at the Spanish Costa, nowadays the money is invested in houses and hotels, for example.

 

It is therefore important to look closely at related countries during customer due diligence in order to be able to determine the geographic risk. In addition, assessing the sector in which the client works becomes an even greater point of attention. Global Industry Classification Standarts (GICS) identifies a total of 3 different "layers" with 11 sectors, 24 industry groups and 69 industries. Institutions subject to the AMLD are responsible for including in their CDD policy what the various risks are of these sectors. It is of course also important that this risk indication is also included in the risk assessment of a (new) client.

In the SCOPE Client Portal you can easily record a correct client profile and a matching risk profile. Using the integrated CDD functionalities, various screenings can be performed to carry out a risk assessment of the client. The risk profile is drawn up on the basis of various risk components such as: geographic, client, job type, sectors, distribution and sources of wealth.

 

It is also imperative that you keep the client profile and the client's risk profile up to date. You can easily keep the client's risk profile up-to-date in the portal by placing the client on the monitor list. The client is then monitored 365 days a year for the risk components and you will receive a notification as soon as something changes in the risk status of the client. To keep the client profile up-to-date, it is necessary to maintain good contact with the client. Dual access in the client portal, dual access, makes maintaining the client profile even easier. Both the employees and the client can look at the same data, so that there is no room for misunderstandings.

Do you want more information about the SCOPE Client portal? Please contact us. Fill in the contact for, send an e-mail to info@scope.nl or call us +31 (0) 23 517 9200.

Sources:

Annual report FIOD 2020, Investigative Netherlands together strong in the fight against fraud. (2021, January 11). Consulted from https://www.fiod.nl/jaarbericht-fiod-2020-opsporend-nederland-samen-sterk-in-de-fraudebestrijding/

Voskuil, K. (2021, January 11). Your criminal money can be laundered with a potato or diamond, more and more criminals are learning. Consulted from https://www.parool.nl/nederland/met-een-aardappel-of-diamant-was-je-crimineel-geld-prima-wit-leren-steeds-meer-criminelen~baef3528/

Points of attention for institutions subjected to AMLD in 2021

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Points of attention for institutions subjected to AMLD in 2021

Reading time: 4 min

In short

At the end of 2020, the Netherlands Authority for the Financial Markets (AFM) published an updated version of the guidelines on the Money Laundering and Terrorist Financing (Prevention) Act (AMLD) and Sanctions Act. For example, they recommended that a continuous sanction screening system be used. They also reported that in the meantime all clients, hired for the change in the law in 2018, must be checked again.

This is not for nothing, last summer the Trouw published an article with Sharon Oded, professor at Erasmus University. She warned us that the Corona pandemic makes 2020 the ideal year for criminals to launder their dirty money.

"Criminals can more easily take their illegally obtained money to the upper world now that companies are busy not to go bankrupt." 

The exact money laundering figures for 2020 are not yet known, but let's be honest, every euro is of course too much. Let 2021 be the year in which institutions take their gatekeeper function seriously. Based on the guideline, we have listed the most important points for attention for you:

Don't be to general with your risk assessments formulation

The risk assessment must clearly show which risk factors played a role in the development of the risk assessment. For each risk factor you state why it is a risk factor and how this influences the risk assessment. For example: you have a client who is a PEP. It is then necessary to describe what a PEP entails and whether this increases or decreases the client's risk. Be as specific as possible.

Appoint someone within the institution who is responsible for compliance with the AMLD and Sanctions Act

Not every institution has the option of assigning someone in a separate compliance function. However, it is important that one of the day-to-day policymakers is designated as the person responsible for compliance with the Wwft and Sanctions Act. Furthermore, an institution is obliged to provide the institution with the implementation of a separate compliance function, insofar as this is proportionate to the nature and size of the institution.

Client due diligence revision

People who have become clients before the AMLD amendment on 25 July 2018 must now be checked again according to the current guidelines. Depending on the risk assessment, it is even expected that a second check has already been carried out. All client files of clients that have been accepted for the amendment of the law with a higher risk must therefore already have been revised.

Reconstruction obligation with regard to identification obligation

Be aware that the personal data of clients must be recorded in a "retrievable" manner. This can be in the form of a written document or online.

Clearly state the purpose and nature of the business relationship

The client file must specifically state the purpose and nature of the business relationship. The AFM is also entitled to request this information. If a business relationship is entered into with a client from abroad, it must be recorded why they want to do business in the Netherlands.

Perform your risk assessment yourself at all times

It is prohibited to outsource client risk assessments to a third party. Outsourcing the monitoring and screening of clients is permitted, however institutions must interpret and describe the "outcomes" themselves.

 
Stricter training requirements

Employees must not only be able to recognize unusual transactions, but also to properly and completely conduct customer due diligence. Where it was previously mandatory to periodically organize Wwft training, it is now mandatory to offer this regularly to the employees within the institution. The information about the offer, the training courses followed, the frequency and the employees who follow training courses must be recorded.

Make sure you have included all sanction lists in your screening

Where the old guideline was limited to the European or Dutch sanction lists, the new guideline indicates that an institution should screen its relations against:

  • The National Terrorism Sanctions List
  • The EU sanctions list; and
  • The UN sanctions list
 
An ongoing sanction screening system

Institutions are already required to periodically monitor clients, depending on the risk assessment. In the latest update of the guideline, the AFM emphasized that it would be even better if continuous monitoring takes place. In any case, it is important that checks are carried out at the following times:

  • At the start of the relationship;
  • Periodically in case of changes in the relationship (such as the UBO);
  • In case of changes to the sanction lists; and
  • After the relationship. That is, at the end of the relationship, a final screening must take place.
 
Het UBO-register

The UBO register, which was opened on September 27, 2020, is only useful if the Ultimate Beneficial Owners of institutions are actually registered here. You still have a little over a year to register. If an institution has not registered the UBOs before March 22, 2022, there are consequences.

With CDD On Demand you are always assured that the correct sanction lists are checked. The monitor function ensures that you receive an immediate notification as soon as something changes for one of your clients on the monitor list.

For just € 1.50 you can screen your client against eleven different (sanction) lists and for € 3.00 the client is monitored for 365 days. compliance check and monitor function here.. Better be safe than sorry!

CDD On Demand updates December and January

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CDD On Demand updates December and January

Reading time: 3 min.

In short

New way of purchasing credits for existing customers

Existing customers have recently been able to purchase new credits in the portal, which are immediately added to their account. At the top right you can purchase a new option on credits. It is therefore no longer necessary to buy credits on the website! You will then receive an email with your invoice in PDF format.

Search engine screening also possible in batch control

It is also possible to perform a search engine screening from the batch control. The user can enter his own search terms for persons and companies:

 

Option to add comments

Users have the option to add comments. The search engine results in particular can be a reason for extra explanation. This is added to the report:

 

Extra monitoring report

Monitor match report

The report that is generated after confirming a match. This is almost the same as the CDD Person / company check report.

Monitor client report*

The report shows from when to when the client was monitored, if and when matches were found during the monitoring period. *only available for the CDD On Demand web version, not for API.

New! Monitor overview of all customers

The report shows an overview of all clients on the monitoring list. Available from Monitoring list.

See the example below:

 

Improved lists; search option and more customers per page

In order to keep the overview with larger numbers, the lists (for example the lists with the relationship overview and the monitoring overview) contain more items per page and one has been given a search function.

General conditions & privacy statement

As soon as we have a new version of the general terms and conditions and / or the privacy statement, we can have it accepted again by existing users.

They will then see this after logging in:

 

Maintenance and malfunction notification

To inform users about current malfunctions / maintenance, the option has been added to display a notification block with adjustable:

  • Start and end date and time
  • Text
  • Extensive text in dialogue

 

Justice wants to use shady notaries, brokers and accountants to fight money laundering

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Justice wants to use shady notaries, brokers and accountants to fight money laundering

Reading time: 4 min

In short

Justice wants the Public Prosecution Service to cooperate with notaries, accountants and brokers who themselves do not take the anti-money laundering rules so closely. Minister Grapperhaus of Justice and Security wants to make it easier for criminal facilitators of fraud and money laundering to act as crown witnesses, in exchange for a reduced sentence and witness protection. The idea behind this is that it will be easier for the Public Prosecution Service to find out about the source of the criminal activity and possibly the related criminal organization. This proposal, which will be presented to the House in 2021, is part of a larger plan to combat the mixing of the upper and lower world.

 

Gate keeps function

Shady civil-law notaries, accountants and brokers who knowingly launder black money are seen by the judiciary as facilitators for criminals. They make it possible, among other things, that the black money flows into the upper world with impunity and is therefore laundered. Fraud and money laundering have been a headache for the judiciary for some time and they try to use notaries, accountants and real estate agents as so-called gatekeepers because of the Money Laundering and Terrorist Financing Prevention Act (AMLD). The gatekeeper function was created for companies subject to the AMLD as a so-called first line of defense for the government. In case of large cash transactions and suspicious items, the gatekeepers are the first to inform higher authorities such as the Financial Intelligence Unit (FIU) Netherlands. The higher authorities will then take it further and possibly proceed to prosecution. Of all professions with a gatekeeper position, notaries, accountants and real estate agents are the most likely to facilitate and help criminals with money laundering, for example with the purchase of real estate and the writing of suspicious cash income flows.

By expanding the crown witness regulation, Minister Grapperhaus hopes that it will become more attractive for facilitators to cooperate with the judicial authorities in exchange for protection and a reduced sentence. In the eyes of the Public Prosecution Service these facilitators are petty thieves and by working with them the Public Prosecution Service can get closer to the larger organizations. Organized drug crime is worth billions and is partly perpetuated because the black money can seep through to the upper world. The facilitators often have deep-rooted knowledge of criminal money flows and the tip money from the Public Prosecution Service is often insignificant compared to the money they receive from the underworld. That is why the judiciary is looking for another way to convince them and to cooperate with the judiciary. With the proposal to expand the crown witness regulation, the judiciary and the Public Prosecution Service hope that the links between the underworld and the upper world can still be reached.

 

Skeptical voices from their own trade associations

However, trade associations are skeptical about the plans of the justice system. They argue that there are few bad apples and that the Public Prosecution Service would do better to share more information. The privacy of criminals is now well protected, so that some notaries, brokers or accountants unknowingly do business with these criminals. Moreover, a reduction in the sentence is of no use because for facilitators it often takes several months and the Public Prosecution Service may remit a maximum of half the sentence for crown witnesses (art. 44a Dutch Criminal law).

 

How SCOPE CDD On Demand can support you in performing your gatekeeper function

In the context of obtaining information about the person or legal entity with whom the gatekeeper is conducting business, SCOPE FinTech Solutions has developed the CDD On Demand solution. The CDD On Demand solution simply performs a comprehensive background check for you, before entering into a business agreement with the relevant client. The compliance check checks the person or legal entity you entered on various points, including international and national sanction and investigation lists such as Interpol. It also checks receivership and administration registers and risk countries. You can read more about our extensive compliance check. The CDD On Demand solution also offers the possibility to use your monitor clients daily for new or additional risk factors, in this case you will receive a notification immediately. The CDD On Demand solution has been specially developed to save you time and take the time consuming customer due diligence investigation off your plate. You can try it yourself for free, you can apply for ten free credits and you can use them to perform a customer due diligence check yourself and experience the convenience of CDD On Demand for yourself.

Combine customer research with working from home; how do you do that?

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Combine customer research with working from home; how do you do that?

Reading time: 4 min

In short

Working from home is the new norm, and although it was a bit of a switch, many organisations and their employees have now found their way around it. Video apps like Zoom and Teams have become household staples and just about all the rooms in the house have already been used as workplaces. In many cases, working from home does not cause problems, but how do you carry out a proper client survey if you cannot meet the client in 'real-life'? Take, for example, the identification requirement: you need to identify the client and verify their identity, so you ask for a copy of their passport. However, the client refuses to provide these personal documents online. How do you ensure that your client can still share his/her documents with you safely?

Identifying the client

To identify the client, as described in the AFM's guidelines, you can simply use the data as provided by the client himself. You can have the client fill in the data via your own secure website or, you can go through Zoom or Teams to discuss this in “person”.

Identity verification is usually done by means of a valid passport, identity card, or driving license. People often don’t like sharing these documents over the internet. However, the Government has developed an app that makes these documents a lot less prone to fraud, and where they can be shared safely. This is the ID Copy app. The app gives your clients the ability to easily hide data (which you don't need to see) and to insert a watermark.

Below you will see a video explaining clearly how a copy of the ID can be made less fraud-prone through the ID-Copy app. More information about the app can be found on the website of the National Government.

Please note that you do need to check whether the client really has the document and that it is not a submitted copy of the Internet. For identifying the client, it would be best to schedule an appointment for a video call in which you first review the personal data, then check whether the person does indeed have the document, and then refer the client to the ID-Copy app. The client can share his personal information so securely and you can identify your client in accordance with the AMLD.

Obtaining an UBO statement

To prevent criminals from hiding behind a legal entity, you as a gatekeeper are obliged to establish the identity of the UBO (Ultimate Beneficial Owner). First of all it is necessary to investigate who the UBO(s) are behind the legal entity. You could find out the UBO through the UBO check of CDD On Demand. For more information about the UBO check, please click here. After the structure of the legal entity and the UBO(s) have been established,you must have it verified for the client.

There are multiple possibilities to do this. If you use the UBO check in CDD On Demand, you will receive a UBO report afterwards. This contains all the results from your UBO check. When you have such an UBO report, you can share it with your client and ask if the results are correct. You can also ask the client to share the data with you. In this case, you still need to check that this information is correct. Once all the data is correct, have the document containing all the data be signed by (the UBO(s) of) the client.

Compliance check

After you have checked the UBO’s it is necessary to screen the UBO’s, companies, and natural persons with whom you want to do business against various risk factors. CDD On Demand makes it easy to perform this screening without bothering the client with all sorts of annoying questions. At the end of the investigation you will receive a certified report as evidence for the compliance screening.

Monitor function

You have performed the compliance screening, you have assessed the risk, and finally engage in a business relationship with your client. From now on, it is important that you continue to monitor the risk assessment for any changes. In CDD On Demand, you can quickly add your clients to a monitor list where your clients are monitored daily using different risk components. As soon as something changes in the status of (one of) your clients, you will receive an email and you can take steps if necessary. If the risk of the business relationship has become unacceptable, the business relationship must be terminated.

In any case, you can easily perform your compliance checks and UBO checks from home with CDD On Demand. You simply only need to purchase credits and can then easily check your clients along different (sanction) lists. Don't forget to clearly document all the steps you are taking in the context of the client investigation. Your research should be replicable. Would you like more information about CDD On Demand products? Check out our pages about the compliance check, the UBO check and the monitor function.

Client case Yes-co

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Client case Yes-Co

Reading time: 2 min.

In short

Integration

Since Yes-co stands for the maximum support of brokers, they were looking for a module with which brokers could easily meet the obligations under the Wwft and Sanctions Act. They found this module in CDD On Demand. From now on, the brokers can simply perform their Wwft checks and UBO checks within their trusted system.

With these fully integrated checks, brokers can carry out the mandatory Wwft and UBO checks via their own system. After activating the apps, the checks can be started in a simple way for all relations from the system.

After checking and collecting all data, a report is automatically generated with all results. Performing the checks and documenting the steps taken in the context of the mandatory customer due diligence becomes such a simple act for brokers! The big advantage is that the report neatly returns as a certified PDF in the Yes-co system, at the relevant relation and / or object!

 

Customer benefits

The biggest advantage for our brokers is that they can keep everything in one place. The full client profile including controls is available in their own trusted system. Because it is easy to use and very clear for the brokers, they can easily comply with the AML and Sanctions Act.

Why CDD On Demand Yes-co has opted for a collaboration with CDD on Demand for the Wwft and UBO checks, because they could switch with them quickly and easily and generate a system link via the existing API. The support of CDD on Demand is excellent and the lines are short, so that we as Yes-co can do what we are good at: maximum support for brokers!

Looking back on a successful collaboration

In the run-up to the launch of the Wwft check and the UBO check, there was a lot of communication about the weather. We listened carefully to each other's wishes and that has resulted in a great collaboration. Thanks to the right support from SCOPE FinTech, we were able to realize the Wwft check and UBO check within a short time. Our brokers will be happy with our choice of CDD On Demand!


About Yes-co

Yes-co has an automation system especially for brokers and property managers. They have a unique concept: the automation system, with the quality of a full CRM system, can be purchased for free and then supplemented as desired with paid apps from the App Market. The system offers the perfect solution for managing relations, projects, agenda, e-mail, etc.

Would you like to know more about our project at Yes-co or about what we can do for your organization? Please contact our sales manager Bas van der Veer, who can be reached via 023-5179200 or b.vanderveer@scope.nl.

Five questions for the director

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Five questions for the director

Reading time: 2 min.

In short

A short piece about Fred van 't Hoff; founder of SCOPE FinTech Solutions in 1987. He has been asked a number of questions which he has answered.

Please tell us a bit about yourself, both at work and leisure.

Fred van ‘t Hoff, born in 1955, married for 26 years to a lovely wife, proud father of a young man of 24 and a lovely woman of 23. We live in multiple areas in Europe and in British Columbia.

Funny enough everything I did when I was young is coming back in my life now, like saltwater fishing, walking in the dunes, beach life, and building plastic scale models in the winter. All simple things are good as far as I am concerned.

I started working in ICT in 1977. I worked for Burroughs (now known as part of Unisys) in the Netherlands in various sales positions. In 1987 I started my own software company in what we now call CRM. The name of this company is SCOPE marketing technology. Nowadays CRM has become a commodity and that is not what we prefer to sell. In 2016 we started a new product line with a MiFID II compliant KYC product.

 
Which product or service do you offer, and who are your competitors?

In 1987 we started to develop a (MS-DOS) CRM system for PC networks. In 1996 this was followed by a Windows version based upon MS Access, ODBC, and a relational database. We were a Dutch market leader in CRM from 1995 – 2005. The market went from a Blue Ocean to a Red Ocean. We did not win this, and we are probably the last original Dutch CRM supplier. We lasted 35 years in this area, and we still retain big customers using our SCOPE CRM systems.

The main products we work on now are RegTech products like AML and MiFIDII compliant KYC Cloud based solutions.

 

How did you get the business idea and take it from launch to the first customers?

“Computers, do we have to work with computers; I thought we had to sell computers?”  This was what one of my colleagues said when he heard he had to work with a computer system. I was surprised that in 1982 the general sales department was not working with software. I saw lots of possibilities like direct mail, forecasting, cold calling etc. So, I started my own business in my home. This was the start of an interesting journey after 10 years in Burroughs/Unisys.

In 2016 we were making a profit, but we had no big projects. So, we decided to build a new product “MiFIDII Know Your Customer” from scratch in the Microsoft Azure cloud. The idea came one of our CRM customers in asset management. This was a big project. I think our SCOPE KYC product is probably the best product we ever built.

A German software supplier wanted a “KYC” system for a customer but what they really needed was AML. So, we started to develop that product. After a few months we had a working solution and started to sell the product. This time we are successful. Quite soon it was obvious that the best strategy was to work with software partners with a vertical solution. We have about 5 partners that built our AML product in their software solution and this number is rising quick.

 

Which key trends and opportunities should we be watching in (European) finance?

The customer gets more and more access to ICT and knowledge-based applications like Robo investors. The average customer will have better ICT functionality than the average supplier. This is new. Big tech like Google, Apple and Amazon are empowering this.

Big tech will also start and will continue to offer additional financial products like (Apple) pay. With the interest at current rates the mortgage business will be crowd funding based. Robots will enter the marketplace.

If people want their privacy back this might change, because these Big Tech financial tools to come at a cost of personal privacy.

 
What is on your bookshelf/ reading list?

I read a lot of Science fiction books. Especially Jack Vance and Isaac Asimov. Also, Japanese books about history and famous samurai like Musashi are on the bookshelf. I also have a lot of spiritual books about the afterlife and philosophical books. My last book is the biography of Johan Cruijff by Auke Kok.

Client case NNEK

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Client case NNEK

Reading time: 2 min.

In short

The integration

NNEK has a large, growing customer base and was looking for a module with which they can easily and quickly check and monitor their clients within the framework of the Wwft and Sanctions Act. The integration with CDD On Demand has made this possible.

Within their own system, they can screen their clients against various (sanction) lists. For example, it can look at whether the client is a politically exposed person (or related to a politically exposed person), whether the client has been negatively in the news, is under the supervision of a law enforcement officer, and much more.

In addition, the clients can be placed on a so-called monitor list. As soon as a "hit" is found with a (sanction) list, a notification is made in the system. This allows NNEK to keep the client profile and risk assessment up-to-date. The requirements of the Wwft and Sanctions Act can thus be met in a simple manner.

The SCOPE CDD On Demand platform can be quickly and effectively integrated into our platform thanks to the extensive API and SCOPE offers the necessary support and guidance.according to Hessel de Haan, head of ICT at NNEK

 

Why did NNEK choose the CDD On Demand solution?

NNEK has conducted extensive research into available software suppliers in the market, preconditions from functionality, technology, privacy and data protection, and has also spoken with fellow asset managers about their experiences. The choice ultimately fell on SCOPE CDD On Demand because of the price / quality ratio of the solution and the good integration possibilities with the existing platform of NNEK.

Compliance Officer Erik Teusink of NNEK states: “It gives our organization peace of mind that our clients are screened daily against the various (sanction) lists”.

 

Looking back on a successful collaboration

NNEK now has more than 25,000 clients on the monitor list, including natural persons and companies. The fine cooperation between the professionals of NNEK and ours has ensured that full use can be made of the integrated solution.

 
About NNEK

NNEK has been active in asset management since 1986 and its core values ​​are sober, driven and accessible. In collaboration with independent financial advisers, they assist clients in building capital. By building capital, customers can achieve their (financial) goals, for example help the (grand) children with their student finance, build up a better pension or 'just' enjoy financial peace.

Power monopoly of the Chamber of Commerce

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Power monopoly of the Chamber of Commerce

Reading time: 4 min

In short

DISCLAIMER: This article is specifically written about the Dutch Chamber of Commerce and does not apply to other Chambers of Commerce.
The Chamber of Commerce (CoC) is the place where their dreams began for the many registered entrepreneurs. The Chamber of Commerce is also a business partner for many entrepreneurs; they buy the business information from the Trade Register and then resell it. Nevertheless, these trade relations are in danger of being overthrown now that the Chamber of Commerce is asking higher prices for the data and imposing more restrictions. Five major purchasers of business information have recently formed an association and have spoken out against the policy of the Chamber of Commerce. They are even considering filing a lawsuit to "ensure that the Trade Register remains public."

Public law monopoly

The Chamber of Commerce is an independent administrative body of the Dutch government. An independent administrative body is an organization that carries out government tasks, but does not fall directly under the government; they have "some public authority." The Chamber of Commerce has been given six statutory tasks by the government, including the maintenance of the Trade Register. All Dutch companies are required to be registered in the Trade Register and everyone can view this information against payment.

The Chamber of Commerce has been commercially active in the sale of business information for a few years now. Commercial parties have since noticed that the Chamber of Commerce is increasingly trying to protect the data. The Chamber of Commerce is in the process of realizing a power monopoly by selling the data at an increasingly expensive price and by selling it with more restrictions. For providers of business information it is no longer attractive to buy and resell the data from the Chamber of Commerce; leaving the Chamber of Commerce as the only provider. The strange thing about this situation is that the Chamber of Commerce is using its public-law role to bring about the monopoly of power.

Because entrepreneurs are obliged to register with the Chamber of Commerce, to send annual accounts and nowadays also to register the UBO (The Chamber of Commerce is the only one with the legal authority for these registrations), it is felt that the data should therefore also be publicly accessible, without additional restrictions. However, the Chamber of Commerce is of the opinion that since the amendment of the Trade Register Act, they can set more conditions for the use of this Trade Register. 

The Association for B2B Business Information consists of five trade partners of the Chamber of Commerce and has spoken out against this policy of the Chamber of Commerce. They doubt whether the Chamber of Commerce can impose an additional condition on the use of the Trade Register, because it is a public database.

The Chamber of Commerce naturally works with more trading partners, who generally have a more nuanced view of the issue. The SCOPE CDD On Demand solution also uses company information from the Trade Register from the Chamber of Commerce for the UBO investigation and the investigation into group relationships. The Chamber of Commerce acts as a "data partner" that provides input for the UBO investigation. Your client's Chamber of Commerce registrations can be requested. 

You enter a company name with place of business, or the Chamber of Commerce number, and CDD On Demand then takes over most of the work. The UBO research of SCOPE CDD On Demand provides insight into the company structure quickly and easily, in which the CDD On Demand solution indicates:

  • which person (s) is the UBO;
  • welke persoon (personen) de mogelijke UBO kan zijn of;
  • which person(s) can lead you to the UBO.

When you are talking to a client, you can immediately verify how the company structure works by means of CDD On Demand. The UBO investigation is part of an extensive Wwft client investigation.

In addition to identifying the UBO, the compliance check also looks at sanctions lists, receivership and administration registers and risk countries. You can read more about our comprehensive compliance check here . The CDD On Demand solution also offers the possibility to monitor for new or additional risk factors, in this case. you will immediately receive a notification. The CDD On Demand solution has been specially developed to save you time and take the customer due diligence investigation off your hands. You can try it yourself for free, you can request ten free credits and you can use it to conduct a Wwft client screening yourself and experience the convenience of CDD On Demand yourself.