Why is registration in the UBO register important?

It is important to prevent and combat money laundering and fraud. More transparency in organizations helps with this. That is why every EU country has a UBO register. UBO stands for 'ultimate beneficial owner', or the 'ultimate beneficial owner' of the organization. Since September 2020, around 1.5 million organizations have been obliged to register their UBOs with the Chamber of Commerce. But why is this so important? 

Organizations that you need for your business operations, such as banks, investment institutions and financial service providers, are legally obliged to consult the UBO register during customer due diligence. This allows them to determine and control who they are doing business with. Your bank, investment institution or financial service provider checks whether its research matches the information about your organization in the UBO register. If this is not the case, this will be reported and investigated. Investigative services can also check who has an interest in an organization for an ongoing investigation in order to find suspicious persons more quickly.

How do you make the UBO declaration?

Did your organization already exist before September 27, 2020? Then look up at the Chamber of Commerce whether you need to register your UBOs. This depends on the legal form. The authorized representative of your organization will then make the UBO declaration. Or you can ask a notary to do this.

Are you starting a new organization? Then you or your notary register the UBOs at the same time as your registration in the Trade Register. You decide who the UBOs are in all situations.

By registering correctly you help prevent financial crime. And together we stimulate a healthy business climate in the Netherlands and Europe.

Source: Chamber of Commerce