Why is it important?
Over the past few years, the importance of CDD has been increasingly emphasised. The key issue here is: How honest are organisations really? During the economic crisis, the trust in financial institutions was damaged considerably. In an increasingly number of industries awareness is growing that an honest business practice is indispensable to win the trust of customers, companies and authorities. In addition, LeasePlan has a banking licence. Therefore, LeasePlan must abide by certain rules.
What is the legal framework?
In order to advance the integrity of the financial sector, there are international rules with which LeasePlan must comply. The rules are incorporated in legislation and De Nederlandsche Bank (DNB - the Dutch central bank) exercises supervision. First, these rules applied mostly to banks, but now they apply to a wider range of institutions. LeasePlan is legally obligated to conduct a ‘counterparty check’.
In the Netherlands, the CDD obligations have been incorporated in:
- the Financial Supervision Act (Wft - Wet op het financieel toezicht);
- the Sanctions Act 1997 and;
- the Money Laundering and Terrorist Financing (Prevention) Act (Wwft - Wet ter voorkoming van witwassen en financieren van terrorisme).
Who or what are UBOs?
UBO is the abbreviation of ‘Ultimate Beneficial Owner(s)’. A UBO is a stakeholder of an organisation and, therefore, the owner, a shareholder or someone with a large amount of control in the organisation. A UBO is always a natural person, never a company. There is also the possibility that there is no UBO. If there is no UBO, then you should provide the pseudo-UBO.
How do our contacts become aware that we are conducting a UBO check?
Ideally, our contacts are not aware of the UBO check. We use public sources to ascertain the correct information of the UBOs and directors. Unfortunately, not all relationships can be found in public sources and then we have no other option than to contact you to comply with our obligation. We do this by letter and a UBO registration form. We send these by e-mail. Your company fills in if there is a UBO and, subsequently, who that is (or they are) in the organisation. LeasePlan registers the information and checks whether one of these persons appears on international sanctions lists.
What happens if a UBO or director is on a sanctions list or has been connected to money laundering or financing terrorism?
Then, LeasePlan is prohibited from conducting business with that person.
Who can I contact if I have any questions?
Your account manager will provide you with further information