deWaardKramer

Since 1 June 2003 all accountants and tax consultants in the Netherlands, along with many other professionals, are covered by the Personal Identification (Services) Act (WID) and the Disclosure of Unusual Transactions Act (MOT).

• Under the Personal Identification (Services) Act, we are obliged to verify the identity of our clients.

• Under the Disclosure of Unusual Transactions Act, we are obliged to report unusual transactions to the Office for the Disclosure of Unusual Transactions (Meldpunt Ongebruikelijke Transacties).

Personal Identification (Services) Act

The Personal Identification (Services) Act obliges accountants, tax consultants and other professionals to verify the identity of existing and new clients before providing a requested service. Clients may be natural persons or legal entities. The identity of a natural person is verified on the basis of a valid travel document, such as a passport or a European identity card, a valid Dutch driving licence, or a Dutch document with which an alien can confirm his or her identity and residency status.

The identity of a Dutch legal entity or a foreign legal entity based in the Netherlands is verified on the basis of an authenticated extract from the Trade Register of the Chamber of Commerce where the legal entity is registered or on the basis of a document drawn up by a civil-law notary practising in the Netherlands. In addition, the identity of the natural person representing the legal entity must also be verified on the basis of one of the documents mentioned above.

Disclosure of Unusual Transactions Act

The Disclosure of Unusual Transactions Act obliges accountants, tax consultants and other professionals to report any unusual transactions concluded by or in the name of a client. Whether a transaction is unusual or not is determined on the basis of a number of criteria ("indicators") set out in the Act. These indicators can be divided into objective and subjective indicators.

Objective indicators:

• A transaction which is reported to the police or the judicial authorities in connection with money laundering.

• A transaction with a value in excess of € 15,000 (or the equivalent value in another currency) paid to or through the mediation of a professional in cash, with bearer cheques or similar means of payment (i.e. not funds transfers, cheques made out to named natural persons or legal entities, credit card payments or PIN payments).

Subjective indicators:

• A transaction may be deemed unusual because of the situation in which it takes place and because it is believed to be associated with money laundering activities. It concerns transactions which the professional encounters in the course of his or her work and which he or she suspects or senses may not be above board; and situations which a professional believes, on the basis of his or her experience, to be out of the ordinary for no credible reason.

• A transaction in which the client pays a cash share below € 15,000 and the professional has the impression that this is done deliberately to remain below the disclosure limit. This includes a situation where a number of cash deposits is made which together exceed € 15,000.