KVK extracts UBO register not available
UBO check possible through KVK extracts from trade register
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Since Tuesday, November 22, UBO data are no longer public and it is no longer possible to request a KVK extract UBO register.
Minister Kaag of the Ministry of Finance has asked KVK to temporarily stop providing information from the UBO register with immediate effect. This decision was taken in response to the European Court of Justice's ruling on questions from a Luxembourg court, in a case where a company wanted to limit public access to its data in the UBO register.
For users of the SCOPE FinTech solutions, this means that the UBO check based on the KVK UBO register cannot currently be used. Fortunately, there is another possibility to find out the UBO through SCOPE CDD, namely the UBO check based on KVK extracts from the trade register.
Update Kamer Van Koophandel 09-12-2022:
We have received the following correspondence from MinFin.
On Tuesday, November 22, the EU Court of Justice concluded that public access to the UBO register is insufficiently substantiated. The Netherlands has subsequently temporarily closed the UBO register for information provision. A legal analysis is currently taking place as to what the Court's ruling means in the Dutch context. However, some measures can be taken immediately:
- The goal is to reconnect competent authorities to the registry this year, looking first at authorities involved in enforcement.
- Concerning Wwft institutions, the situation is more complex. It requires more legal analysis and practical elaboration, including examining safeguards for access to information disclosure. Decisions to reconnect these institutions and implementation will take place in early 2023. Until a Wwft institution is affiliated, the temporary arrangement regarding the establishment of new business relations applies. The following was previously communicated about this:
"In the event that a legal entity has made the declaration, but it has not yet been processed, it is sufficient for the reporting institution to establish that the declaration has been made, with the client's explanation of which UBO data and underlying documentation have been declared thereby. That the statement has been made can be determined based on the confirmation email from the Chamber of Commerce. In doing so, the client should inform the reporting institution as soon as the registration has been completed.
- No discrepancies can be found as long as the register is not consultable. So, materially, there can be no feedback as long as extracts cannot be obtained and feedback is not an issue.
- Right now we are focusing on access for competent authorities and Wwft institutions, but due to the Court's ruling, we also need to find a way forward concerning the third category from AMLD4, namely individuals and organizations that can demonstrate a legitimate interest. This also requires further analysis.
The SCOPE CDD UBO-investigation
CDD On Demand offers an online platform in which the CoC registrations of your client can be retrieved. You enter a company name with a place of business or the Chamber of Commerce number, and CDD On Demand then takes most of the work off your hands. Within one minute you will get an overview of the company structure, in this the CDD On Demand solution indicates:
- which person(s) is/are the UBO(s), or;
- which person(s) can be the potential UBO(s), or;
- Which person(s) can lead you to the UBO(s).
When you are in a meeting with a client, you can immediately verify the company structure with the help of CDD On Demand.
The Ultimate Beneficial Owner (UBO)
UBO stands for “Ultimate Beneficial Owner” and Dutch. An institution subject to the AMLD is obliged to find out the identity of the UBO. The reason that a UBO must be established is to prevent - unknowingly - doing business with natural persons who have malicious intentions (such as money laundering) and who want to hide behind a legal person.
There are several criteria on which a person is classified as a UBO. These criteria involve holding ultimate ownership or control in a legal entity through the holding of shares, voting rights, ownership interests or other means.
Once you have identified an UBO, it is important to screen them. You must perform a compliance check to find out whether the UBO poses a higher risk of money laundering or financing of terrorism.