Client Due Diligence KYC and disclosure of "unusual transactions"
Under the Regulation on the Legal Profession (Voda), we are required to ascertain the identity of our clients. In addition, the Prevention of Money Laundering and Financing of Terrorism Act (Wwft) imposes obligations (beyond those in the Voda) on all lawyers to, under circumstances, identify their clients and report so-called "unusual transactions".
When the lawyers of Fairway assist you in proceedings, or advise you before, during and after proceedings, or on instituting or avoiding proceedings, no identification or reporting obligations under the Wwft apply. However, the obligations under the Voda always apply.
If you request our assistance in connection with the purchase or sale of registered property, the management of money, securities and the like, the incorporation or management of companies, legal entities or similar bodies, the purchase or sale of companies, advice on taxes, the establishment of a right of mortgage without additional delivery or acting in your name and for your account in a financial or real estate transaction, we are required - pursuant to the Wwft - to identify the client and verify his identity, in accordance with the rules of the Wwft. This means, among other things, that we will conduct searches in the trade register of the Chamber of Commerce or similar foreign institutions and also identify the Ultimate Beneficiary Owner (UBO). Identification and verification of the identity of natural persons is done by means of a valid identification document.
In order to avoid misunderstandings and delays, we draw your attention to the fact that - if our services fall within the scope of the Wwft and barring exceptional cases - we may not commence our services before we have completed this client due diligence, if applicable, and will not provide our assistance if the client due diligence cannot be completed.
If our services fall within the scope of the Wwft, we must also assess whether there is a possible (intended) unusual transaction. Also during the relationship with you as a client, we will have to continue monitoring for the occurrence of unusual transactions. If we suspect an unusual transaction, we are obliged to report it to the Financial Intelligence Unit -Netherlands (FIU).
If we make such a report, we are not allowed to notify you (the so-called "tipping off prohibition").
If you have further questions or would like further information on the obligations under the Wwft and/or Voda, you can of course contact us about this at any time.