A UBO extract is an extract from the UBO register of the Netherlands Chamber of Commerce (KvK). It shows who the ultimate beneficial owners of an organisation are. Since 22 November 2022, not everyone can request this extract. Access is restricted to certain parties, such as Wwft institutions and competent authorities. Wwft institutions request it through the KvK.
The extract is a useful source in your customer due diligence. It does not replace your own research.
What is the UBO register?
UBO stands for Ultimate Beneficial Owner. This is the natural person who ultimately owns or controls an organisation. As a rule, it concerns an interest of more than 25 percent. If you cannot find such a person, the senior managing officials count as the pseudo-UBO. You can read more in What is a UBO?
Since 2020, Dutch organisations have been required to register their UBOs in the UBO register of the KvK. The register is part of the Trade Register. The aim is to make clear who is behind an organisation. That makes it harder to hide money laundering and terrorist financing behind a company or foundation.
An extract contains basic data about the UBO. For example, the name, the month and year of birth, the nationality, the country of residence and the nature and extent of the interest.
Who may request a UBO extract?
Until the end of 2022, part of the register was public. Anyone could view data for a fee. On 22 November 2022 the Court of Justice of the European Union ruled that unrestricted public access infringes the right to privacy. The KvK then closed public access.
Since then, only certain parties have access. Among others:
- Wwft institutions, such as banks, trust offices, accountants and notaries, for their customer due diligence
- competent authorities, such as supervisors and FIU-Nederland
Not sure whether your organisation has access? Check the KvK website. It sets out which parties can consult the register and under which conditions.
How does a Wwft institution request an extract?
Broadly, it works like this. You first demonstrate that your organisation is a Wwft institution. You can then request the UBO data of an organisation through the KvK. You do this as part of customer due diligence on that organisation.
A few practical points:
- Request the extract at the start of the investigation, and again at a periodic review.
- Keep the extract in the customer file, together with the date on which you requested it.
- Compare the extract with the customer's documents, such as a shareholder register, articles of association or a UBO declaration.
The KvK explains on its website exactly how access works. Follow that guidance, as the procedure may change.
The extract is not enough
The Wwft is clear: you may not rely solely on the UBO register. You establish the UBO yourself. The extract is one of your sources, alongside the customer's information and your own research into the structure.
That makes sense. An organisation registers its own UBOs. A registration can be outdated, incomplete or incorrect. With a complex structure involving foreign companies, trusts or foundations, the Dutch register will not show everything either. Further research is then needed, sometimes in the form of enhanced customer due diligence.
Discrepancy found: the duty to report back
Sometimes you see a difference. The register shows, for example, a different UBO from the one you establish, or a different interest. In that case the duty to report discrepancies (terugmeldplicht) applies. Wwft institutions and competent authorities must report such a discrepancy to the KvK.
What you do in practice:
- First check whether the discrepancy is real. Ask the customer for an explanation and additional documents.
- Record your findings and sources in the file.
- Report the discrepancy to the KvK, in the way the KvK specifies.
- Take the discrepancy into account in your risk assessment of the customer.
The KvK investigates the report. A discrepancy report is not the same as reporting an unusual transaction to FIU-Nederland. If the situation gives reason to do so, the latter may also be necessary.
Doing UBO research yourself or outsourcing it
UBO research takes time, especially with layered structures. You request extracts, compare sources, record your findings and report discrepancies. Many organisations do this themselves. Others outsource the execution, for example during a large influx of new customers or a remediation project. You then remain responsible for the policy and the decisions, but the research is carried out by specialists.