The Ministries of Economic Affairs and Climate Change, Justice and Security and Finance are currently analyzing the European Court of Justice ruling on a European anti-money laundering directive. A preliminary analysis shows that the provision of information from the UBO register by the Chamber of Commerce can be restored soon. For some institutions, connection to the register is a lot more complex.
So says Finance Minister Sigrid Kaag in response to written questions by Eelco Heinen (VVD) (1).
The UBO register is a European database that shows who owns a foundation or company. The register also tells who has control or an interest in the foundation or organization in question. In this way, Brussels wants to prevent criminal activity and make it easier to track down the perpetrators.
The UBO register is a result of a European anti-money laundering directive to prevent the financing of cybercrime and terrorism. However, the European Court of Justice considers that the directive affects fundamental human rights. "However, the Court finds that the interference resulting from that measure is not limited to what is strictly necessary and is not proportionate to the objective pursued," the court said.
In response to this ruling, Minister Kaag ordered the Chamber of Commerce to provisionally not to provide information from the UBO register. This was reason for the VVD and SGP to ask written questions. The minister has answered the parties' questions.
Kaag said the Ministries of Economic Affairs and Climate, Justice and Security and Finance are studying the Court's ruling. Officials say the Court distinguishes between three categories of entities that currently have access to the UBO register: (1) competent authorities such as investigative agencies, (2) institutions dealing with the Money Laundering and Terrorist Financing Act (Wwtf) such as banks, and (3) the general public.
"For the proper functioning of the registry, it is important that the first two categories have access to information from the registry," Kaag stressed. She expects "soon" to restore the information supply for intelligence and investigative agencies and other authorized bodies. For Wwtf institutions, the situation is more complex, because a close look must be taken at what non-emergency information may not be provided. Officials look closely at what conditions must be met to restore the information supply for this target group.
"Access by the general public will be limited to individuals or organizations that can demonstrate a legitimate interest," Minister Kaag said. Once the legal analysis is complete, she promises to inform the House of Representatives.
To Member of Parliament Chris Stoffer (SGP), the minister writes that the obligation for member states to make the UBO register accessible to the general public will lapse. "As a result, only the obligation for member states to provide access to information on beneficial owners will still apply to competent authorities, reporting institutions and all persons or organizations that can demonstrate a legitimate interest," Minister Kaag said.
However, this is easier said than done. "In the Netherlands, we have not explicitly named all these three categories in our legislation," the minister stresses. So it will take time and effort to give Wwtf institutions access to the UBO register again. Together with the Chamber of Commerce, the minister will soon restore the provision of information to competent authorities.
https://www.tweedekamer.nl/kamerstukken/kamervragen/detail?id=2022Z22877&did=2022D55401
