Trust offices

Integrity

Surveys conducted by regulator DNB in 2020, show that the integrity policies of many trust offices are inadequate. For example, the SIRA is often not in order and customer due diligence is often insufficiently carried out and recorded.

In addition, the fiscal integrity risks are still insufficiently controlled, according to a thematic survey carried out by DNB last year. The regulator has already indicated that it will continue to pay attention to this subject in the coming years.

For you as a trust office, it is therefore important to clearly define what is meant by tax integrity risks. You must also have clear and concrete procedures that enable you to identify and manage integrity risks.

The SIRA also plays an important role here; you should describe concrete scenarios how tax integrity risks can occur within the organization and compare them with the risk appetite.

Transactionmonitoring and profile

In addition to having the right policies and procedures in place, it is important to ensure that your employees have the right knowledge to properly fulfill their transaction monitoring obligations. You should also have a concrete and up-to-date transaction profile for each client.

UBO reputation test

Another area of focus for you as a trust office is the so-called UBO reputation test. This will become mandatory for new UBOs as of May 1, 2021. This means that the UBO (or pseudo-UBO) of a trust office must be suitable and reliable. To determine this, you need to submit an assessment request to DNB. The application form is not yet available, but will be published shortly.

For existing structures, it is assumed that, in accordance with the transitional law, they meet the reputation test unless there are changes that might raise the need for a reassessment.

Communicating with the regulator

As a licensed trust office, you may have to deal with the national regulator DNB. In the field of privacy legislation, you may also have to deal with the AP. In order to preserve your reputation, it is important to maintain your relationship with these supervisory authorities.

If you are confronted with an (unexpected) survey by the DNB or another regulatory body, we can assist you before, during and after the investigation.

How can we help you?

Charco & Dique can help you to implement the requirements of the Wtt, Wwft and Sanctions Act. Our experienced consultants can support you, among other things, in setting up and implementing an adequate transaction monitoring process. We also offer various Wwft trainings and courses through our training institute, The Ministry of Compliance.