In recent years, a great deal of regulation has been introduced to prevent money laundering and fraud. Notaries are also subject to these rules. The notarial profession is, among other things, subject to the Dutch Act on the Prevention of Money Laundering and Terrorist Financing (Wwft).

Under this law, notaries have an obligation to identify their clients. In addition, we must investigate the background of the client and the transaction. Depending on the risk assessment, further investigation and additional measures may be required. Finally, in certain cases there is an obligation to report to the Financial Intelligence Unit (FIU), about which the notary is not permitted to inform the client.

To comply with the identification obligation, each client will be asked to provide a copy of their identity document. We ask you to bring the same identity document with you when the deed is executed. Before signing the deed, the notary must inspect it and compare it with the details stated in the deed.

In addition, for legal entities and partnerships, the notary is required to establish the identity of the ultimate beneficial owner or owners (Ultimate Beneficial Owner, the so-called UBO). A UBO is defined as any natural person who is the ultimate owner of or has ultimate control over the legal entity or partnership, or the natural person on whose behalf a transaction is carried out. The mandatory UBO investigation was introduced by law because criminals often use structures involving domestic or foreign legal entities as a means of concealing the criminal origin of funds.

We must also investigate whether you are a so-called politically exposed person, PEP. A PEP is a person who holds or has held a prominent public function in the past 12 months. In the Netherlands, for example, you are considered a PEP if you are or have been a minister or state secretary, or if you are or have been a member of the board of a national political party. You are also regarded as a PEP if a family member holds or has held such a position. Mid-level or lower officials, such as municipal councillors, mayors, aldermen and members of provincial councils, as well as board members of local political parties, are not considered PEPs.

See also the website of the Bureau Financial Supervision at www.bureauft.nl
.

For more information about client due diligence, see the KNB brochure “Client Due Diligence and Reporting Obligations in the Notarial Profession”.