WTT (Trust Licencing)

As of the 1st of March 2004, The Netherlands has implemented a licensing requirement for Trust companies, which will be regulated by the Dutch Central Bank (DNB). This licensing requirement has come about partly as a result of this legislation and partly as a result of a worldwide drive to regulate such services. While we offer services that go beyond “trust services” we will be required to apply for such a licence.

Pursuant to the Act on the Supervision of Trust Offices (‘ASTO’), persons or entities established in the Netherlands are prohibited from pursuing the business of a trust office without a licence. Offices that intend to pursue the business of a trust office can apply for a licence at DNB. No trust services may be provided before the licence has been granted.

The ASTO provides for a transitional arrangement to the effect that existing trust offices as of 1 March 2004 were presumed to be in compliance with the licence requirement, provided they have sent a written notification to DNB within eight weeks of the date the ASTO entered into force. The notification period ended on 26 April 2004. It is therefore no longer possible to make use of the transitional arrangement.

Being active as a trust office as meant in the ASTO will constitute an offence punishable by a fine of no more than EUR 348,500. In addition, violation of the ASTO will count as an economic offence as meant by the Economic Offences Act. Newly established trust offices going into business after the ASTO has entered into force will not be eligible to use the transitional arrangement but will need to apply for a licence.

After acquiring such a licence it is essential that we can demonstrate our continuing implementation of the WID and MOT legislation outlined here below.

Law on Identification of Clients (WID)

This law obliges our industry to be able to identify those behind all operations in which we are involved. It is required under the new legislation that we provide this information to the relevant authorities upon their legal request to do so.

Law on Reporting Unusual Transactions (MOT)

Accountants, tax consultants and other service providers are legally obliged to report to the authorities, transactions they suspect to be of an unusual nature. It is not required under the law that there is certainty about the unusual nature or illegality of the transaction merely that it is of an unusual nature.

What does “unusual” mean?

- Payments in cash of more than Euro 15.000
- A number of payments of smaller amounts in cash where it is suspected that these payments are being made to stay below the limit of Euro 15.000 per transaction.
- Payments where money laundering is a possibility.
- Payments where we suspect a strong possibility of money laundering operations.
- Payments outside the “normal” course of business in which a company is involved where the explanation is ambiguous.