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In some cases, financial service providers such as banks, insurance companies, civil-law notaries or tax consultants in the Netherlands, must investigate their clients and other parties concerned in order to confirm their identities. These cases are stipulated in the Prevention of Money Laundering and Terrorism Financing Act (Wet ter voorkoming van witwassen en het financieren van terrorisme, Wwft).
Clients wishing to use your financial services must prove their identity. You must check their identity details and record them for at least 5 years. Furthermore, you must also establish the ultimate beneficiary of the service you provide, for instance by verifying who the actual directors or shareholders of a company are. For this purpose, you make your own risk assessment, based on your client’s background and the type of service they are requesting. You are free to choose how comprehensive your investigation will be.
Upcoming changes: reporting cross-border constructions
If you work as an intermediary (such as accountant or tax consultant), from 1 January 2021 you have to report any cross-border constructions that you believe are set up to avoid taxes to the Dutch Tax and Customs Administration (Belastingdienst). This is a result of the European Mandatory Disclosure Rules (MDR)/DAC6. You will have to provide information on any relevant constructions dating back to 25 June 2018. If you know of any cross-border constructions set up to avoid tax and you don't report it, you may be fined or prosecuted.