On 1 November 2022, the act on registration of the ultimate beneficial owner of trusts and funds for joint account (the ‘‘Act’’) will become operational.
The Act implements the obligation to maintain and centrally register information about the ultimate beneficial owner (the ‘‘UBO’’) of trusts and funds for joint account (in addition to the act regarding the prevention of money laundering and terrorist financing for companies and legal entities). UBO’s of trusts and funds for joint account of which the trustee is established or resides in the Netherlands, or of which the trustee enters into a business relationship or acquires real estate in the Netherlands can be identified with this register.
The UBOs of a trust and funds for joint account are the settlors, trustees, protectors, individuals exercising control over the trust and all beneficiaries that have an interest of at least 3%. In case there is no individual that can qualify as a UBO on the basis of economic interest, the beneficiaries will be defined as a group.
The UBOs of a fund for joint account has not been defined. However, the fund manager (beheerder), the legal title holder (bewaarder) will qualify as UBO.
The following details of the trust or fund for joint account will be publicly available:
- Name and type of the trust or fund
- Date and place of its establishment
- Its purpose
The following details of UBOs will be publicly available:
- Month and year of birth
- Country of residence and nationality
- Percentage in the trust or fund by category (set by governmental decree)
Trusts and similar legal constructions must register their UBOs within 3 months after the implementation, which means that the UBOs must be registered by 1 February 2023.
In case you have any questions regarding the Act or your corporate governance? Please contact us: Carmen.firstname.lastname@example.org.