The deadline for organisations subject to UBO reporting requirements to register their UBOs expired on 27 March 2022. We have previously published a article written about the consequences of failing to register the UBO on time.
Busy at the Chamber of Commerce
Many companies waited until the very last moment to register their UBOs. There are various reasons for this, including dissatisfaction amongst some over an alleged breach of privacy. As a result, around 27 March this year, the Chamber of Commerce (KvK) was inundated with UBO registrations and fell behind in processing them correctly. This backlog has also given rise to concerns amongst financial institutions.
Research shows that 25% of the owners of the thirty largest family-run businesses in the Netherlands are not listed in the UBO register. Some of the companies state that this is due to a backlog at the Chamber of Commerce. It is also suggested that, in some cases, ‘pseudo-owners’ are listed, meaning that the actual owners remain anonymous.
No need to panic
Financial institutions are concerned that they will not be allowed to enter into new business relationships with organisations that are not yet properly registered in the UBO register.
The Ministry of Finance has stated that this is not the case. If the Chamber of Commerce is unable to clear the backlog, the introduction of the UBO register will be postponed. The Ministry of Finance is closely monitoring the Chamber of Commerce and will postpone the introduction of the UBO register if deemed necessary. This will be announced at least one month before 1 September 2022.
This temporary measure will only apply to entities that have submitted the required UBO declaration. If an organisation has submitted the correct UBO declaration but has not yet received confirmation that it has been processed, it may continue to enter into a business relationship. There will therefore be no ban on accepting new customers.
Ensure that your UBO registration is correct
As mentioned, an extension will only be granted to organisations that have completed the required UBO registration. So please ensure that you have this in order. Failure to do so may have adverse consequences for entering into a new business relationship within the financial sector. Furthermore, enforcement action will be taken if the UBO registration is missing.