UBO register access
In the letter Privacy First points out that the UBO register is a source of concern for people involved with legal entities and other entities listed in the Trade Register. This is also because the term "UBO" is very broadly defined, which means that many people with no economic interest in a legal person or entity end up in that register.
The government has not yet commented in the bill on exactly which private parties will have access to the UBO register on the basis of "legitimate interest. Privacy First fears such low-threshold and large-scale access to the UBO register that it becomes de facto public. This after the European Court of Justice correctly (in a case supported by Privacy First) several years ago had determined that a public, widely accessible UBO register violates European privacy law.
The bill was submitted on June 25, shortly after new European anti-money laundering legislation was published in the European Official Journal (June 19). This means that it may be assumed that through this bill the new access rules as contained in the European Anti-Money Laundering Directive announced on June 19 [*] will be implemented.
The directive states that those who have a "legitimate interest" will be granted access to all data in the UBO register for three years. Those who are granted access on that basis are not tested for integrity, and criminalization of abuse and other safeguards are missing from the directive.
The objections to the directive also apply to the bill submitted by the government. Privacy First hopes that the House of Representatives will pay attention to respecting the fundamental rights of UBOs. To this end, Privacy First has formulated a large number of questions about the bill and the new access rules of the new European Anti-Money Laundering Directive.
All foundations become 'high-risk entities'
The new European anti-money laundering legislation provides that all foundations are deemed similar to express trusts [**]. As a result, a very large number of individuals involved in foundations must be registered in the UBO register, including founders, directors, supervisors, beneficiaries and senior executives. A rationale for the need to designate all foundations as high-risk entities (as Anglo-Saxon trusts apparently are) is lacking.
Seriously, senior executives, that is, employees with executive functions who are responsible for, and accountable to the board for, the day-to-day management of the entity, are also bombarded as "UBOs.
Privacy First has also formulated a large number of questions on this topic.
Fundamental rights must also be respected in the fight against crime
Privacy First understands the desire of European and Dutch legislators to fight crime. However, this does not mean that fundamental rights of citizens active in charitable causes may be arbitrarily undermined.
Read HERE the entire letter (with draft Chamber questions in attachments) from Privacy First to the House of Representatives (pdf).
[*] Directive (EU) 2024/1640 dated May 31, 2024.
[**] Article 57 (1) of Regulation (EU) 2024/1624 dated May 31, 2024.
