Identification and WWFT (Anti-Money Laundering Act)

On 1 August 2008, the Anti-Money Laundering and Counter-Terrorist Financing Act (WWFT) came into force. The WWFT applies to giving advice or providing assistance in the following (intended) transactions: the purchase or sale of real estate;

1. the purchase or sale of real estate;
2. the management of money and other assets;
3. the incorporation or management of legal entities and companies;
4. the purchase, sale or takeover of businesses;work in the tax field. 

Identification requirement 

A strict identification requirement applies to all services covered by this legislation (virtually the entire field of work of the notary, with the exception of family law and inheritance law). Every client who wishes to have such a service performed by the notary must first be identified in person once. Even if the notary has known him or her for years. 

Identification must take place before entering into a business relationship with the client or carrying out an incidental assignment. For the notarial profession, identification may take place at the latest when the notarial deed is signed, as is also prescribed by the Notaries Act (Wet op het notarisambt). 

EU/EEA nationals can be identified by means of a valid national passport or driving licence (provided the holder lives in the Netherlands and the driving licence bears a photo) or a European identity card. Other persons can be identified by means of a valid travel document or a foreign national's document.
The identification of a legal entity, such as a private limited company (B.V.), takes place in principle by means of a recent and original extract from the trade register. 

Client due diligence 

The WWFT also requires an investigation into the background of the client (and any ultimate beneficial owner) and their risk profile in the following cases:

1. when entering into a business relationship, i.e. a relationship that will last for some time, with a client in or from the Netherlands (ongoing services);
2. b. when carrying out, in or from the Netherlands, an incidental transaction for a client of at least € 15,000, or two or more related transactions with a combined value of at least € 15,000 (incidental services);
3. if there are indications that the client is involved in money laundering or terrorist financing;
4. if there is doubt about the reliability of previously obtained client data; or
5. if the risk of an existing client's involvement in money laundering or terrorist financing gives cause to do so.
6. Where applicable, the notary must investigate the origin of funds. 

Reporting obligation (formerly the MOT Act: reporting of unusual transactions) 

If the notary suspects that he is being asked to provide services that may be connected with money laundering or terrorist activities, he is obliged to report this to the reporting centre for unusual transactions, officially called FIU-Nederland (www.fiu-nederland.nl). This also applies to an intended transaction that is not (yet) being carried out. In that case, the notary is not permitted by law to inform his client of a report. 

Furthermore, on the basis of their own rules of conduct, notaries may not accept cash amounts of more than 15,000 euros. If more than 15,000 euros is nevertheless paid in cash, or such a payment is being considered, the notary must report this to the reporting centre. This also applies if, at a client's request, the notary pays out more than 15,000 euros in cash or has it paid out by the bank. For the filing of tax returns, such as inheritance tax returns, the reporting obligation applies where money laundering is suspected. 

Exploratory discussion 

The notary has no reporting obligation if any (intended) money laundering activities come up in an exploratory discussion. Clients can therefore discuss everything freely with the notary. The statutory obligations mentioned above apply from the moment the notary actually takes a matter on and it is clear that the requested service falls under the statutory regime.