New feature: search engine screening!

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New feature: search engine screening!

Reading time: 2 min.

 From now on it is possible to perform search engine screening in addition to your screening of natural persons or companies through various (sanction-)lists. This is perhaps the way in which you are currently also performing your customer due diligence screening. Then you probably also have experienced what a time-consuming job this is, not to mention the difficulty of assigning a risk assessment to the results found...

We have made this a lot easier for you! Simply enter the search term at CDD On Demand, which you would also have entered in the search engine and you will immediately see how many results the search term has, with a risk indication! Let's get in to the details;

What does a search engine screening entail?

With this screening you have the option to screen natural persons and companies through all public information provided by the search engine Bing. In CDD On Demand you will immediately receive a risk indication based on all the information found. This will save you a lot of time and takes away a lot of hassle!

How does the screening work?

In addition to CDD On Demand proposing a number of good search terms, you also have the option of adding an extra search query, eg “Jantje + Money Laundering”. You get to see how many results have been found for this search and based on the results you will also receive a risk indication.  U krijgt vervolgens te zien hoeveel resultaten er zijn gevonden voor deze zoekopdracht en op basis van die resultaten ontvangt u ook een risico indicatie. 

Green = No results, this search probably does not indicate an increased risk.

Orange = Less than 10 results, this search may indicate an increased risk.

Red = More than 10 results, deze zoekopdracht geeft mogelijk een indicatie voor een verhoogd risico.

Why has the search engine screening been added?

This search engine screening serves as an additional safety, to identify possible risk indicators that may not have been identified when consulting previous data sources. An extra assurance! Better be safe than sorry!  Better be safe than sorry! 

Want to try it yourself?
Would you like to have a supporting tool for your customer due diligence screenings? CDD On Demand is the solution for you. With CDD On Demand you are able to screen through various (sanction-)lists, monitor your clients 24/7, perform UBO checks* and perform a search engine screening from now on!

Request free credits now and discover the features with trial account. 

 

*Performing a UBO check is not possible with a trail account. Contact us for more information for more information about our UBO check. 

The Annual budget: the wealthy have to absorb the blow among others

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The Annual budget: the wealthy have to absorb the blow among others

Reading time: 3 min.

Last Tuesday was a very special Prinsjesdag. Not only did the COVID-19 virus dramatically change the ceremony, it also had a significant effect on changing the Annual budget (Miljoenennota) itself. Multinationals, the wealthy, the self-employed, and large companies without investments are going to have a difficult time in the coming year. On the other hand start-up companies, people with savings, and people on fixed salaries receive tax advantages. Pension rebates are expected to go primarily towards the public and healthcare sectors.

The government expects a budget deficit of 43 billion in 2021, and of 53 billion in 2020. Corona-related aid packages for businesses amounts to 46 billion in this fiscal year. Next year the estimated budget deficit is estimated to be 61% of GDP due to falling tax revenues.

Box 3 is addressed

The capital gains tax will be addressed next year. The tax-free capital, the amount of capital for which no tax must be paid, is increased from 30,846 euros to 50,000 euros. On the other hand, the wealthy with more than 50,000 euros will pay more capital gains task. On the calculated returns you no longer pay 30 percent taxes, but 31 percent.

Middle-class and start-ups get more benefits

By reducing the first income tax bracket and increasing the employment discount, the middle class is expected to grow about two percent on their net salary during the next year. The government also wants to help start-ups in the crowded housing market. An example is scrapping transfer tax for persons between the 18-35 years old who purchase their first. Investors who aim to buy a second (or third, fourth etc.) property to rent out must pay 8% tax on the transaction.

Action equals reaction?

The changes highlighted above are summarized from the Annual budget, these changes may affect starters, the middle class, and the wealthy, and they may cause changes in behavior as well.

The withdrawal of highly taxed investors from the housing market may create more room for first-time buyers, and as a result realtors and notaries will see an increased number of clients. The former will assist in the purchase of property, while the latter draws up purchase contracts, mortgage deeds, and the occasional co-habitation contract. The influx of new clients also means that realtors and notaries need to spend more time on client investigations, which can be quite time-consuming.

Just as these changes from the Annual budget may create an abundance of work for notaries and realtors, the same may happen for asset managers. Investors which might be deterred from investing in housing may instead opt to invest their capital through asset managers. Accepting new clients represents a high workload for asset managers, as their inventarisation procedures are very extensive. In addition to the Customer Due Diligence components of this procedure, which is also mandatory for realtors and notaries, asset managers also need to go through so-called "Know Your Customer" procedures. This step requires the creation of a comprehensive inventory which maps a client’s family situation, their financial position, and their knowledge of financial markets and previous experience

You can read more about the difference between CDD and KYC in our blog.

Conclusion

The new policy presented in the most recent Budget Memorandum could provide a boost of new customers at various organizations subject to the Wwft, such as brokers, civil-law notaries and asset managers. However, a thorough Wwft client due diligence takes a lot of time because it is difficult to meet all the requirements imposed by the Wwft. It is also difficult to keep an eye on what changes have been made to the continuously changing Wwft.

SCOPE FinTech Solutions has therefore set up CDD On Demand to support small to medium-sized companies in their Wwft obligations. You can purchase credits yourself via the webshop with which you can conduct a Wwft client investigation within three seconds. Based on this, it is checked within a few seconds whether your client poses an increased risk at one of the checked points, which means that you may need to perform an enhanced customer due diligence.

The CDD On Demand solution also offers the possibility to monitor your clients daily for new or additional risk factors, in which case you will receive a notification immediately. Finally, CDD On Demand offers the possibility to try to find out the UBO behind an authority or organization. At the end of the check you will receive a certified report for your own records.

Better safe than sorry!

 

DJE Kapital AG integrates SCOPE CDD with Microsoft Dynamics

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DJE Kapital AG integrates SCOPE CDD with Microsoft Dynamics

Hoofddorp 20-4-2020

Cooperation for better implementation of the Anti-Money Laundering legislation

In cooperation with the Cleversoft group, a leading RegTech software supplier from Munich, the Hoofddorp-based company SCOPE FinTech has developed a standard Customer Due Diligence (CDD) software solution. This solution is fully integrated with Microsoft Dynamics CRM. The Cleversoft group is a Microsoft Dynamics CRM partner and implements Microsoft Dynamics CRM at DJE Kapital. Among other things, the cloud-based SCOPE CDD software carries out background checks (PEP, sanctions lists, adverse media, etc.) for persons and companies. The SCOPE CDD solution enables direct CDD checks to be carried out from Microsoft Dynamics CRM.

The integration with Microsoft Dynamics CRM allows CDD checks to be carried out in a manner that is very user-friendly for the employees. Files are only dealt with in the SCOPE CDD portal if a result is found. The described solution was introduced in December 2019. Since then, more than 5,000 files have been checked.

SCOPE CDD legt alle uitgevoerde controles vast in de vorm van een digitaal gewaarmerkt pdf-rapport. Er wordt ook een compleet onderzoeksdossier vastgelegd in de database. De SCOPE CDD oplossing draait in de Microsoft Azure Cloud omgeving voor een hoge betrouwbaarheid en optimale veiligheid. Ook is de oplossing AVG proof en door SCOPE FinTech is er een externe Data Protection Officer ingeschakeld om erop toe te zien dat de richtlijnen worden gevolgd. Daarnaast is de oplossing juridisch getoetst door een kundige advocaat.

Customer Due Diligence (CDD)

Customer Due Diligence is a form of ‘Know Your Customer’ inventory in the literal sense of the word. It is a process during which relevant information on the customer is collected and assessed for any risks for the organisation of money laundering and/or terrorist financial activities. A CDD must be carried out when a company that falls under the scope of a law or regulation, with regard to the Money Laundering and Terrorist Financing (Prevention) Act or equivalent European or American legislation, wants to enter into a business relation with a customer. This applies to both a one-off transaction and a long-term customer-supplier relationship. This is actually is a risk inventory and a risk assessment in accordance with the guidelines in relevant legislation.

 

About DJE Kapital

DJE Kapital AG is a German group that is active in asset management and has several branches abroad. DJE Kapital AG was founded in 1974, and currently has its registered office in Pullach. DJE Kapital is unique in the sense that they were the first asset manager in Germany to set up an equity fund (in 1987), a fund that is still active. In 2017, DJE Kapital started offering digital online asset management. The history of DJE Kapital has amply proven that it is an innovative company, which has also contributed to its choice for the new SCOPE CDD solution

 

About Cleversoft

The Cleversoft group is a leading RegTech enterprise with Cloud solutions for financial services. Cleversoft is also the implementer of Microsoft Dynamics CRM. The Cleversoft group was founded in 2004. It has is principal place of business in Munich, but there are offices in Amsterdam, Frankfurt, Nurnberg, Luxemburg and Sofia as well. Cleversoft optimises Business processes for legal documents, marketing materials, payment of commissions, and other back-office processes for more than 300 customers.

 

About SCOPE FinTech

A real pioneer in the Dutch ITC sector, SCOPE FinTech was founded in 1987. For over thirty years, it has provided the Dutch market with a professional CRM system. It has a large, loyal customer base, with a focus on the finance sector. After building, developing and selling CRM systems for thirty years, the time came for SCOPE FinTech to expand the product range. Exactly thirty years after SCOPE FinTech’s foundation, a new product was introduced, The SCOPE KYC Cloud solution which has meanwhile been extended with CDD check components.

AMLD for notaries

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AMLD for notaries

The Anti Money Laundering Directive and the Counter Terrorist Financing Regime (AMLD / CTF) was instituted by the government as a means of combating money laundering and terrorist financing. Notaries are important players in this battle, which is why their activities fall under the mantle of the AMLD.

Anti Money Laundering Directive (AMLD)

The AMLD has been drawn up to prevent money laundering and terrorist financing. The AMLD has been in force in the Netherlands since August 1, 2008, and was last amended on July 25, 2018 to the fourth European anti-money laundering directive. The AMLD covers almost all parties involved in or mediating in transactions of financial or movable property. For civil-law notaries, all activities fall under the AMLD, including support in the formation of a company.

What does the AMLD mean for notaries?

The AMLD obliges the notary to conduct a client investigation and to a notification and retention obligation. During the client investigation, the notary must, among other things, identify who the ultimate beneficial owner (UBO) is for each of his or her clients. Based on the client survey, an estimate must be made of the risk of money laundering, financing or terrorism. If this investigation shows that there is a higher risk, or if there is an unusual transaction, the notary is required to make a report to FIU (Financial Intelligence Unit Netherlands).

Under the retention obligation, it is sufficient for the notary to document the client investigation in such a way as to demonstrate that all requirements have been met. This also requires a notary office to have a written risk policy. For example, it is important that employees are adequately equipped to recognize unusual or remarkable situations and that they know what actions to take.

The client research

The client due diligence / client research simply means that the civil-law notary investigates the client if he enters into an alliance or provides a service. Three types of research are recognized by the Wwft: regular, enhanced and simplified customer due diligence. In a regular investigation, a civil-law notary's office must provide insight into and check the following matters:

  • The client must be identified;
  • The identity must be verified;
  • The UBO must be identified and his identity must also be verified;
  • The purpose and nature of the transaction/order must be determined and recorded;
  • The business relationship and its transactions are monitored and, if necessary, the sources of the resources used in the relationship or transaction are investigated;
  • The natural person representing the client must be identified and his identity verified. Of course, it must also be established whether this natural person is authorized to represent the client.

Depending on the findings of this investigation, it may be necessary to switch to a more stringent or simplified investigation. This always depends on the nature of the client, the transaction, or the identified parties. When a business relationship or transaction involves a higher risk, a more detailed investigation should be carried out. Article 1a of the Specific Guidelines provides example situations in which this is the case. For example, this can occur when a UBO is domiciled in a country that the European Union has identified as a risk area, or when the customer or his UBO is a politically exposed person (PEP).

The UBO investigation

UBO means the ultimate beneficial owner behind a (business) entity. Simply put, this is the person who ultimately has the most interest in a transaction or company, and this is always a natural person. Every legal entity must have at least one UBO.

Er zijn geen vaste regels voor de identificatie van de UBO, enkel een aantal indicatieve richtlijnen. Het onderzoeken van de UBO betekend in praktijk dat de eigen- en zeggenschapsstructuren van cliënten en vennootschappen achterhaald dienen te worden om zo een beste schatting van de belanghebbende te maken.

Politically Exposed Persons (PEPs)

Politically Exposed Persons are people with high administrative (policy-determining) positions that are especially susceptible to blackmail and bribery.

A distinction is made between national and local PEPs, with local PEPs (such as a mayor) there is no obligation to intensify the investigation, but this is recommended.