UBO frequently asked questions

Why is the UBO being asked about?

The Netherlands is governed by the Sanctions Act. The purpose of the Sanctions Act is to combat terrorism and criminal organizations. For example, by making it harder for these organizations to obtain money. Schouten Zekerheid is an insurance broker. As a financial service provider, we are required by law to check each year with all our clients whether their company, directors or other interested parties appear on so-called sanctions lists. These sanctions lists include individuals, companies and countries with which no company in the Netherlands may do business. For example, because they are involved in criminal activities or terrorism. The Netherlands Authority for the Financial Markets (AFM) monitors our compliance with applicable laws and regulations.

The legislator has stipulated that every company, including the CoE, is required to have a UBO appointed. If no UBO can be determined based on the questionnaire, one must look for the person who has actual control over the company and/or belongs to the senior management. This person is also called the "pseudo-UBO. The legislator chose this because there is always someone who is responsible and has decision-making power over the company. In this case, the legislator refers to the (statutory) directors.

When determining the UBOs for CoEs, the first step is to assess whether there are individuals with more than 25% of the voting/control ratio in the CoE. If not, the pseudo UBO must be mentioned. These are the (statutory) directors of the VvE. So this can also be the VvE administrator. As a result, the directors (natural persons) or shareholders (natural persons) of the VvE manager are in this case the UBOs of the underlying VvE.

UBO forms must be submitted when applying for insurance, periodically and when a claim is made. Schouten Zekerheid is currently looking for a practical solution for requesting UBO forms when applying for insurance for a VvE. When claims are made, in some cases, a UBO form is already requested. The starting point is that an annual check of UBOs will take place.

As a result of tightened laws and regulations at the European level, Dutch companies will face mandatory registration in a UBO register starting in 2020. The UBO-register is a consequence of the Wwft, Wet ter voorkoming van witwassen, fraudebestrijding en terrorisme (Money Laundering, Anti-Fraud and Terrorism Prevention Act). It requires European member states to more strictly monitor a national registration of UBOs. UBOs are excluded from this mandatory registration.

The Wwft is a separate law of which the UBO register is a consequence. In addition to the Wwft, Schouten Zekerheid as a financial service provider must comply with the aforementioned Sanctions Act. The UBO register is therefore separate from the legal obligation for financial service providers to find out with whom they do business. The exclusion of UMOs from the UBO register therefore does not apply to our obligation to trace UBOs for every business relationship. Based on the Sanctions Act, UBOs must disclose their UBOs if requested by the financial service provider.

For more information, contact one of our specialists.
010 - 288 49 73 or send an email to vve@schoutenzekerheid.nl