The Dutch Parliament continues to examine the issue of data publication on the beneficiaries of companies registered in the Kingdom. This is necessitated by the entry into force of the AML4 protocol, intended to combat money laundering in the European Union.

According to the new rules spelled out as a draft law of the Kingdom of the Netherlands, the regulation will apply to a number of companies. Private limited liability companies, public companies, cooperatives and mutual insurance associations, are all subjects to mandatory registration, along with private foundations, business associations, all types of partnerships, limited partnerships and professional associations.

The requirement to provide information about the beneficiaries will apply to all types of legal entities registered in the Netherlands, regardless of where they operate.

Under the terms of the Dutch law, a beneficial owner of a legal entity is any individual who:

  • Owns more than 25% of the shares of a private limited liability company;
  • Owns more than 25% of the shares in the capital of a partnership;
  • Uses more than 25% of the votes to amend the internal charter of a private foundation;
  • Controls the business operations of a legal entity.

It is expected that the updated rules will come into force in January 2020. As of this date, all legal entities will be bound to disclose information about the beneficial owners during the public registration. For those legal entities that have already registered before 2019, there will be an 18-month transition grace period (until mid-2021), during which these companies will have to collect and submit the relevant information to the state register.