Client identification

In the context of the fight against money laundering, the European Parliament has adopted a directive (nr 2001/97/EG) which extends the identification obligation and the reporting obligation in respect of unusual transactions. As a result of this extension, the existing Act on Disclosure of Unusual Transactions (MOT), from 1993, and the Identification (Provision of Services) Act (‘WID’), from 1 June 2003, will apply to services provided by civil law notaries, attorneys, tax advisers and accountants. The imposed legal obligation means that, before providing any service, the above-mentioned advisers need to identify their client. Domestic and foreign legal entities will be identified by means of a certified extract from the country where they are registered. Moreover, one of the directors of the legal entity (or in the case of joint authority: all those directors who are jointly authorised) must be identified in person by a Loyens & Loeff employee (identification on the basis of an ID document, a copy of which must be made mentioning the date, the name of the person who has identified and a signature). Identification of directors may also be carried out by a third party according to the model ‘statement by a third party’. Click here for this model .

A third EU directive will be implemented in 2008. As far as the implications of that directive are concerned, the situation is unclear at the present time.

Should you have any questions regarding the implementation of the above-mentioned laws by Loyens & Loeff advisers, please contact Petra Schumacher preferably by e-mail ( petra.schumacher-evers@loyensloeff.com ).