The UBO register: the approaching deadline

Since September 27th, 2020, companies are obliged to register owners and persons who have control within the legal entity. The UBO register has been introduced to comply with the European anti-money laundering regulations. Since the deadline is approaching, namely 27 March 2022, regarding the UBO registration, we have briefly listed the background information and the most important points.

  1. UBO-register
  2. The person subject to registration
  3. Privacy
  4. Deadline and consequences
UBO-register

UBO stands for “Ultimate Beneficial Owner”. This is a natural person who owns the legal entity or has control within that legal entity. These are, for example, persons who own more than 25% of the shares, have more than 25% ownership interest or have more than 25% voting rights. In principle, every organization has at least one UBO, but there can also be several UBOs. 

The UBO register was created to combat financial and economic crime. This includes fraud, money laundering, tax evasion, corruption and terrorist financing.

The person subject to registration

The UBO registration obligation applies to the following organizations:

  • Private limited liability companies and public limited liability companies (non-listed)
  • Foundations, associations subject to UBO, mutual guarantee societies and cooperatives
  • Sole proprietorships and partnerships
  • Shipping companies
  • European public limited liability companies
  • European Cooperative Societies
  • European Economic Interest Groupings
  • Denominations

The UBOs of foreign companies are not included in the register. This also applies to legal entities with a principal or secondary establishment in the Netherlands. These companies must comply with the regulations of the country in which they are incorporated.

Privacy

The UBO register complies with the General Data Protection Regulation (GDPR). Some of the data is public and accessible to everyone. The following information is public:

  • First name and last name;
  • Month and year of birth;
  • Nationality;
  • State of residence;
  • The nature and extent of the economic interest of the UBO.
Deadline and consequences

Before March 27th 2022, all entities must have registered their UBOs with the Chamber of Commerce. The Bureau of Economic Enforcement (hereinafter: ”BEE”) supervises the completeness and accuracy of the registrations. If incorrect, incomplete information is passed on or is not registered on time, the BEE has the authority to sanction. The penalty can amount to a maximum of EUR 21,750. In addition, a criminal investigation can also be started with a community service or prison sentence of up to 6 months as a result.

DTS can assist you with the UBO registration and complete this process completely for you. If you have any questions about the UBO register or are not yet registered, please feel free to contact us. We are happy to help you.

More posts by Jiri de Groot