A bill introducing a UBO register for trusts and funds for joint account (fondsen voor gemene rekening) was submitted to the lower house of the Dutch parliament on 26 April 2021. The register will be kept by the Chamber of Commerce in the Netherlands.
Trusts with a trustee located in the Netherlands must register their UBOs in this Dutch UBO register. If a trust with a trustee outside the European Union enters into a business relationship (such as the opening of a bank account) or purchases real estate in the Netherlands, the trustee must register the trust and the UBOs of the trust with the Dutch UBO Register. Funds for joint account, and similar arrangements located in other EU member states, must also enter their UBOs in the Dutch UBO Register.
Who qualifies as a UBO
The UBO definition for a trust and a fund for joint account differs from that for a legal entity. The UBOs of a trust are the incorporators, trustees, protectors, individuals exercising control over the trust, and all beneficiaries or groups of beneficiaries. The same categories of UBO apply to funds for joint account.
To be a UBO of a legal entity, the UBO must have an interest of more than 25%. No such threshold applies to trusts and funds for joint account. Given the implications of the broad definition of UBO for trusts, the government is considering limiting the registration of UBOs to a smaller group.
What details will be registered
The following details of the trust or fund for joint account will be publicly available:
- Name and type of the trust or fund
- Date and place of its incorporation
- Country of its residence and nationality
- Its purpose
The following details of UBOs will be publicly available:
- Their name and month and year of birth
- Their country of residence and nationality
- The percentage and type of interest in the trust or fund – percentages being determined by governmental decree
The personal details of a UBO may be excluded from general disclosure for special reasons, such as the UBO being a minor.
The UBO’s address, day of birth, town and country of birth, email address, personal identification number (BSN) and ID document number, and any documents reflecting the ultimate beneficial ownership, will not be publicly available.
When registration becomes mandatory
Trusts and funds for joint account must register their UBOs within three months after implementation of the new UBO register. The implementation date is not yet known, but we will keep you informed while the bill passes through parliament.