Financial Crime World

Netherlands Lags Behind in Beneficial Ownership Transparency, Report Finds

Introduction

A new report by Transparency International Netherlands (TI-NL) has found that the Netherlands is falling short in implementing beneficial ownership transparency standards. Despite recent positive developments in anti-money laundering regulations, the country’s legislative framework has scored only 39% for its current compliance with UBO transparency.

Report Findings

The report assessed the country’s legislative framework against international standards and highlighted several areas where the Netherlands needs to improve:

  • Lack of clarity around authorized access to UBO information
  • Limited availability of company register data online

However, the report also noted that there are plans in place to introduce a new UBO register and central shareholders’ register, which could help improve transparency in the future.

Proposed Changes

The proposed UBO register would require companies to disclose beneficial ownership information, including:

  • Name
  • Month and year of birth
  • Nationality
  • Country of residence
  • Nature and extent of economic interest

Recommendations

TI-NL called on the Dutch government to take immediate action to improve beneficial ownership transparency, citing the need for more effective access to UBO information and greater clarity around authorized access.

“A well-functioning UBO register is essential for preventing money laundering, terrorist financing, and corruption,” said a spokesperson for TI-NL. “We urge the Dutch government to prioritize this issue and ensure that all companies operating in the country are transparent about their ownership structures.”

EU Regulations

The report’s recommendations come as the European Union prepares to introduce its own regulations on beneficial ownership transparency, known as the Fifth Anti-Money Laundering Directive (5AMLD). The EU directive requires member states to establish a publicly accessible register of UBOs for companies and trusts by June 2023.

Conclusion

The Netherlands needs to take immediate action to improve beneficial ownership transparency. A well-functioning UBO register is essential for preventing money laundering, terrorist financing, and corruption. TI-NL urges the Dutch government to prioritize this issue and ensure that all companies operating in the country are transparent about their ownership structures.