Ultimate beneficial owner of insurance - a.s.r.

In the Netherlands, we are not allowed to do business with persons, organisations or countries that are subject to sanctions. That is why as an insurance company we need to be aware of the individuals that are ultimately party to an insurance contract. That is why we will always ask about the identity of the ultimate beneficial owner(s), and then check whether these individuals are on a sanctions list. We have a statutory obligation to do so under the Dutch Sanctions Act 1977 and the Dutch Money Laundering and Terrorist Financing (Prevention) Act.

- As an insurer, we have a duty to check with whom we are ultimately doing business. That is why we always ask for a Declaration Ultimate Beneficial Owner(s) (UBO). By filling in and signing a UBO Declaration you are giving details about your organisation’s ultimate beneficial owners.
- We keep the completed and signed UBO Declaration in our files.
- We always check whether the ultimate beneficial owners are on a sanctions list of the United Nation, European Union or the Netherlands. That is because the law does not allow us to do business with certain persons, organisations or countries featuring on those lists.
- What if an ultimate beneficial owner is subject to financial sanctions? Then we are not permitted to conclude an insurance contract and, if a contract is already in place, will terminate the contract as soon as it expires.
An ultimate beneficial owner is any individual who directly or indirectly owns an interest of 25% or more in your organisation. What if your organisation has no ultimate beneficial owners with an interest of 25% minimum, and only has a board? Then according to the law the organisation’s directors, such as the chairman, treasurer and secretary, are its ultimate beneficial owners.

Example
An owners’ association has members with apartment rights . If the owners’ association covers two apartment rights, each member will ultimately own 50%. If there are more than four apartment rights, no-one will have an interest of 25% or more. In that case, the ultimate beneficial owners are the individuals sitting on the board. These will usually be its directors, such as the chairman, secretary and treasurer.
- An ultimate beneficial owner is any individual directly or indirectly owning an interest of 25% or more in an organisation or its assets. Or a director of an association, foundation, or religious organisation.
- An ultimate beneficial owner may, for example, directly own shares or depositary receipts for shares. An indirect beneficial owner is any individual owning or controlling 25% or more of:
  - the voting rights in a general meeting;
  - an interest as the beneficiary of the capital;
  - a special controlling interest in the capital;
  - a right to a share in the community;
  - a right to a share of the profit;
  - the voting rights when a decision is made about amending the partnership contract;
  - the voting rights when important decisions are made in terms of performing the partnership contract;
  - actual control.
- An ultimate beneficial owner can never be an organisation. So if any of the beneficial owners is an organisation, we will also want to know who the organisation's ultimate beneficial owners are.
- If any of the beneficial owners is a legal entity, it must be clear who are the individuals ultimately owning the entity. A legal entity may be a private limited liability company (BV), public limited liability company (NV), an association, a foundation, cooperative, general partnership (VOF), partnership firm, or limited partnership (CV).

If you have any questions about the Dutch Sanctions Act, please contact an adviser.