Lawyers are required under the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) to identify and verify the client for certain designated services and to report unusual transactions performed or intended in the context of those services.
Since 1 January 2015, the local dean has been the supervisor of compliance with the Wwft by lawyers. An unusual transaction must be reported by the lawyer to the FIU (the Financial Intelligence Unit Netherlands).
The Wwft applies to law firms and lawyers, insofar as independent professional or business advice is given or assistance is provided in:
The purchase or sale of registered property;
The management of money, securities, coins, banknotes, precious metals, precious stones or other valuables;
The establishment or management of companies, legal entities or similar bodies as referred to in Article 2, first paragraph, section b of the General Tax Act;
The purchase or sale of shares in, or the full or partial purchase or sale or takeover of companies, partnerships, legal entities or similar bodies as referred to in Article 2, first paragraph, section b, of the General Tax Act;
Activities in the field of taxation that are comparable to the activities of tax advisors; or
Establishing a right to a mortgage on a registered property.
The Wwft also applies to lawyers and law firms insofar as they independently act professionally or commercially in the name and on behalf of a client in any financial transaction or real estate transaction (Article 1a, fourth paragraph, section c, under 2º).
It should be noted that the Wwft does not apply to law firms or lawyers insofar as they perform activities for clients concerning the determination of their legal position, their representation and defence in court. For example, this includes assisting in a criminal case.
In principle, Jordan Law does not perform activities to which the Wwft applies. To the extent that the Wwft would nevertheless apply to certain activities of Jordan Law, a lawyer may be obliged to report situations or transactions of an unusual nature to the Financial Intelligence Unit - Netherlands (FIU-NL), as mentioned above. Based on the rules of the Wwft, the lawyer in question or anyone else from Jordan Law may not inform a client of such a report.
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