The Dutch Money Laundering and Terrorism Financing (Prevention) Act requires providers of professional services, among them civil law notaries, to verify the identities of their clients. This Act is based on European legalization aimed at preventing abuse of the financial system for the purposes mentioned.
Dutch legal entities may be identified by means of an extract from the Dutch Trade Register or a deed of a civil law notary. Identification of foreign legal entities is possible using an extract from a Trade Register in their own jurisdictions or other documents that are generally acceptable for that purpose. Further, we will need to identify the persons that may act on behalf of a legal entity.
In principle, we must also establish the ultimate beneficial owner, for both the Dutch and the foreign entities. An ultimate beneficial owner of a legal entity is the individual who, directly or indirectly, holds more than 25% of the shares or has a certain control of that legal entity.
Private individuals may be identified by their passports. In addition, for foreign clients we must establish whether they are politically exposed persons within the framework of European legislation. If so, additional inquiries must be made.
Lustrous Law will be happy to answer any queries of its (new) clients on identification issues.