Please beware: KYC/CDD client review has to be taken very seriously
Recently, more and more ‘Dutch companies’ have been receiving letters from the KYC/CDD-department of their (Dutch) banks, in order to comply with the obligation of financial institutions in the EU under the AML-directive to perform a recurrent client due diligence. If the concerned financial institution has not been able to ensure itself of fully complying with AML & CFT-regulations, such client due diligence could ultimately lead to closure of the account(s) at the concerned bank . Under these circumstances, it can be deemed virtually impossible to open an account with a different (Dutch) bank, therefore hugely complicating doing business in the Netherlands.
KYC/CDD? Keep your Bank!
Whereas Magic Circle or other big corporate (legal 500) law firms are usually conflicted by their assistance to the financial situations performing the client reviews themselves, RWV Advocaten established a Keep your Bank-team, specialized in assisting (Dutch and international) companies with the procedures of financial institutions performing their (mandatory) client due diligence under AML & CFT-regulations.
With respect to such client reviews, it has come to our attention that international groups with a Dutch branch or office, sometimes run by a Dutch trustee or a (international or even local) compliance officer, are – rightfully – not always fully familiar with the (type of) practical information that is to be provided to the concerned financial institution. As a result, discussions might arise that could eventually lead to the termination of one’s bank account and/or credit in the Netherlands.
More information about KYC/CDD client review and AML & CFT-requirements?
If you have any questions about KYC/CDD client review and AML & CFT-requirements, please contact the people from the KYB-team. They are able to talk you through the practical implications of the current client review as being performed by your bank and advise you on the necessary steps to be taken, in order to prevent your bank from ending your business relation and blocking or closing your account(s). Assistance can be provided not only in Dutch and English, but also in Italian, Spanish and Russian.