Pursuant to the Money Laundering and Terrorism Financing (Prevention) Act, Redept is obligated, among other things, to (1) establish the identity of the parties involved in the transaction, (2) establish the origin of the funds involved in the transaction (if applicable), (3) establish who the ultimate beneficial owner(s) of a company is/are, and (4) establish whether this ultimate beneficial owner(s) or (a) specific person(s) associated with this ultimate beneficial owner(s) hold a politically prominent position.

This legal obligation applies to all purchase transactions, in which both the buyer and the seller must be investigated. For rental transactions, Redept is required to investigate both the tenant and the landlord for transactions with a monthly value of at least €10,000.

Verifying Identity

To establish the true identity, we require certain information from both the buyer and seller, and the tenant and landlord, such as their official name, information as recorded in the Trade Register, and address. We also need to know whether either party is located in a high-risk country or a country subject to sanctions. In addition to the identity of the legal entity, we must also record the details of the legally authorised representatives of that entity.

Information about the transaction

Furthermore, we must determine whether this is a market-based transaction or an unusual one, for example, because a complex structure is used or because there is no normal economic rationale. We must also inquire about the legitimacy of the source of the funds used to finance the transaction or the property. Redept is required to report unusual transactions to the Financial Intelligence Unit.

Ultimate Beneficial Owner

An ultimate beneficial owner (also known as a UBO: Ultimate Beneficial Owner) is a natural person who ultimately owns or controls the party or, as the case may be, the natural person on whose behalf a transaction or activity is carried out. This definition includes, but is not limited to, natural persons who ultimately own or control the company, through (i) direct or indirect holding of more than 25% of the shares, voting rights or ownership interest of the company (right to distribution from the company’s assets, including profits or reserves or surplus after liquidation), including through the holding of bearer shares, or (ii) other means, including but not limited to the conditions for consolidation of annual accounts, as referred to in Article 2:406 in conjunction with 2:24a, 2:24b and 2:24d of the Civil Code.

If, after exhausting all possible means and provided there are no grounds for suspicion, none of the aforementioned persons have been identified, or if there is any doubt as to whether a person referred to above is the ultimate owner or has control, or is the natural person on whose behalf the transaction is being conducted, then the natural person(s) belonging to the senior management of the partnership (one or more partners, excluding a limited partner) will qualify as a (pseudo) ultimate beneficial owner(s).

Politically Exposed Person

If a transaction involves (a family member of) a (former) politically exposed person, this must be reported as this is considered a risk under the Money Laundering and Terrorist Financing (Prevention) Act (Wwft). Redept will then monitor the transaction more closely. A natural person qualifies as a politically exposed person if they have been entrusted with one or more of the following functions:

• Head of State, Head of Government, Minister, Deputy Minister, or Secretary of State;
• Member of Parliament or a similar legislative body;
• Member of the executive board of a political party;
• Member of a Supreme Court, Constitutional Court, or other high judicial body that delivers judgments against which, except in exceptional circumstances, no appeal lies;
• Member of an audit office or the board of directors of a central bank;
• Ambassador, chargé d’affaires, or senior officer of the armed forces;
• Member of the management, supervisory, or administrative body of a state-owned enterprise;
• Director, deputy director, member of the board of directors, or holder of an equivalent position in an international organization.

A qualifying family member of a politically exposed person is:

• their spouse or a person considered equivalent to the spouse of a politically exposed person;
• their parent;
• their child, the spouse of that child, or a person considered equivalent to the spouse of that child.

A person who qualifies as a close associate of a politically exposed person is a natural person:

• who is known to be the joint beneficial owner of a legal entity or legal arrangement with a politically exposed person;
• who has a close business relationship with a politically exposed person;
• who is the sole beneficial owner of a legal entity or legal arrangement known to have been set up for the actual benefit of a politically exposed person.

Unacceptable Risk
Redept will not provide services to clients who pose an unacceptable risk under the Money Laundering and Terrorism Financing (Prevention) Act (Wwft). If unacceptable risks exist, Redept will not accept the client or, where necessary, terminate the existing relationship with the client. Redept will never cooperate with any criminal offence. Some examples of unacceptable risks are:

• • A client (or ultimate beneficial owner, the UBO) that appears on the EU sanctions list, the UN sanctions list, or the national sanctions list;
  • Shell banks;
  • Legal entities with a evade taxes);
  • Natural persons and legal entities suspected of involvement in a criminal organisation;
  • Clients who wish to remain anonymous or provide false identity information;
  • Clients who refuse to provide legally required information;

Client Due Diligence

To conduct the client due diligence, we request that you complete, sign, and submit the form below digitally.

Refusal to Cooperate

If any of the parties involved in the transaction refuses to cooperate with the investigation that Redept is legally required to conduct, Redept is obligated to report this to the Financial Intelligence Unit. Redept will do so in all cases.