Minister Hoekstra of Finance sends to the Lower House, also on behalf of the Minister of Justice and Security, the advice of the Bureau ICT-toetsing (BIT) on the technical realization of the register of beneficial owners of legal entities (the 'UBO register').
Dear Chairman,
Herewith I send you, also on behalf of the Minister of Justice and Security, the advice of the Bureau ICT-toetsing (BIT) on the technical realization of the register of beneficial owners of legal entities (the 'UBO register'). This register is being built by the Chamber of Commerce on behalf of the Minister of Justice and Security and me. In accordance with the decree establishing the BIT, I requested the advice of the BIT from the Minister of the Interior and Kingdom Relations by letter dated December 7, 2018 because the project has an ICT component of more than €5 million.1 The advice was issued on October 28, 2019. The BIT's investigation was conducted in the period February to May 2019. I thank the BIT for the advice, which I consider valuable. Below I address the content of the advice points.
First of all, I note that the BIT indicates that it is positive about the way the realization of the UBO register is being approached. Among other things, the BIT writes that it considers the approach realistic, as well as being positive about the way in which the Chamber of Commerce is steering the development work. I am pleased with the confidence the BIT expresses with this about the program. For the realization and further development of the registry, the BIT still has some points of advice, which are discussed below.
1. Develop fallback scenarios so that January 10, 2020 is not pushed back
The BIT advises developing fallback scenarios to ensure that the implementation deadline of January 10, 2020 required by the (amended) Fourth Anti-Money Laundering Directive is met. This advice specifically looks at overcoming the risk that the 'Notary Application'2 and 'NPA Register'3 components will be delivered too late.
On this part of the advice, I can report that the risk of late delivery of these components identified by the BIT has since been addressed. Both components have been delivered at the time of this letter. Therefore, there is no longer any need to make use of the fallback scenarios already developed.
2. Strengthen control over the further development and data management
Secondly, the BIT recommends strengthening the focus on the further development of the UBO register after January 10, 2020, in part to ensure that the register has a sufficient level of user-friendliness. The BIT recommends creating an approach and roadmap for the further development, involving users in additional functionalities and having the ministries take the lead in monitoring and improving the use of the register.
I endorse the importance of the further development and the focus on the user-friendliness of the registry. The ministries have already made agreements with the Chamber of Commerce about the process of further development and monitoring progress. The concrete advice of the BIT on this point will be taken to heart in the plans for the further development and optimization of the registry.
3. Ensure that UBO data are consistent with the Trade Register
Finally, the BIT advises ensuring that UBO data are consistent with the Trade Register. This advice point is an addition by the BIT to its advice on the Chamber of Commerce's 'Core Healthy' program, about which your Chamber was informed by the State Secretary of Economic Affairs and Climate by letter of June 11, 2019. This program focuses on - simply put - the "renovation" of the Trade Register.
For now, the UBO register is functionally separate from the Trade Register and thus from this program, but the work processes will be increasingly integrated in the future. Given the focus on the 'Core Healthy' program, this advisory point falls partly outside the scope of the UBO Register program, and touches more on the Trade Register and the Chamber of Commerce in a broad sense. This does not alter the fact that the 'Kern Gezond' program, as well as other projects affecting the Trade Register, including those related to legislative and regulatory requirements, may also have an impact on the UBO Register program. In light of this, this advice point will also be taken to heart insofar as it affects the realization of the UBO Register.
Sincerely,
the Minister of Finance,
W.B. Hoekstra
