Client identification

In the context of the fight against money laundering and financing of terrorism, the Dutch Prevention of Money Laundering and Terrorist Financing Act applies to the providing of services by lawyers and other business service providers. On the basis of this Act lawyers are obliged to identify the client, prior to establishing a business relationship and they must notify any (intended) unusual transactions with FIU-Netherlands. This means, that if the client for whom we will have to act is a Dutch legal entity or a foreign legal entity incorporated in the Netherlands, the identity can be established on the basis of an excerpt from the Trade Register or by means of a deed executed by a civil law notary, in combination with a copy of a valid means of identification (passport, driver’s license or other official document) of the person(s) authorized to represent the company. If the client is a foreign legal entity without any establishment in the Netherlands, the identity can, for example, be established on the basis of an excerpt from the Trade Register of the country of origin or on the basis of in international business accepted documents, data or information which are acknowledged by law as a valid means of identification in the country of origin. Further, the identity of natural persons can be established in person. For local and foreign legal entities the ultimate beneficial owner must also be identified. The UBO is considered to be the natural person who, directly or indirectly, own more than 25% of, or who has otherwise control over, the client. It is required to store these data. If the client is a non-resident and is qualified as a politically exposes person, we are obliged to carry out additional investigations. To the above rules there are exemptions e.g. for referrals between professionals where within the European Community a single identification may suffice.