Temporary regulation UBO register extended to 1 January 2023 Accounting this morning

The temporary arrangement that Minister Kaag announced in April due to delays at the Chamber of Commerce in the processing of data for the UBO register has been extended from 1 September to 1 January 2023. This is confirmed by a spokesman for the Ministry of Finance in response to questions from Accounting here until tomorrow..

Temporary arrangement

Companies and institutions had to have complied with the registration obligation in the new UBO register by 27 March at the latest. In April, Finance Minister Kaag announced that Tax will enforce the law. In the same letter to the Folketing, however, she also announced that a temporary arrangement will apply until 1 September 2022, according to which institutions subject to notification when taking on new clients can suffice with the finding that the statement has been submitted, as the client explains which UBO data and underlying documentation. This is due to the peak in submissions around the deadline, which increases the processing times at the Chamber of Commerce. Literally, the minister wrote about this:

‘A caveat to the foregoing is that there is currently a peak in assignments. Many legal entities have waited to apply until around the March 27, 2022 deadline, despite efforts by the Chamber of Commerce to make the filling more gradual. The consequence of this is that the processing times at the Chamber of Commerce increase. Due to the peak, it may take a few months before all statements are processed. As a result, it takes longer for registration applications to be processed in the UBO register. In order to avoid that a longer processing time leads to the interruption of services from reporting institutions to new customers, the following applies in any case until 1 September 2022. In the event that a legal person has submitted the declaration, but it has not yet been processed, is it sufficient to establish that the declaration has been submitted, with the client explaining which UBO data and the underlying documentation has been submitted. That the statement has been submitted can be ascertained on the basis of the confirmation email from the Chamber of Commerce. In addition, the client must inform the reporting institution as soon as the registration has been completed. Of course, the reporting institution always remains – regardless of whether a legal person has complied with the registration obligation (on time) – for customer due diligence, including an appropriate determination of the UBOs. We will monitor case processing times and stay in touch with reporting institutions and supervisory authorities about this measure.’

New postponement

Financial institutions nevertheless feared that they would run into problems due to the arrears at the Chamber of Commerce, FD stated. But as far as Minister Kaag is concerned, that fear was unjustified, she answered the Parliament’s question. The arrears were probably quickly made up, and the minister had already announced that the temporary arrangement would be extended if necessary.

The temporary arrangement has indeed now also been extended, confirms the Ministry of Finance when asked. “This extension was announced on 22 July to all supervisors of WWft and a broad group of sector associations of WWft institutions with the request to disseminate it further.

It is estimated that although the submissions submitted by the March 27 deadline will largely be processed in September, it may take longer to process the entire workload. This is due, among other things, to the fact that in the weeks following the expiry of the deadline, a large number of statements were also received, which could only be processed after the statements had been processed before 27 March. A longer term has been deliberately chosen than is expected to be necessary to create clarity.’

Interesting! Course UBO register and privacy structures | November 2, 2022 | Postillion Bunnik | Teacher: Dr. Jeroen Knoll

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