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A present of 8 million euros

A trust office had failed to report a transfer of shares /depositary receipts for shares in time to FIU-Netherlands and consequently received an administrative penalty.

This judgment was rendered by the Dutch Trade and Industry Appeals Tribunal (College van Beroep voor het Bedrijfsleven) on 17 January last. Earlier, the court had come to the same conclusion.

De Nederlandsche Bank (DNB) had imposed an administrative penalty of 40,000 euros on the trust office since the office had not reported the above transfer to FIU-Netherlands until four months later.

The case started in December 2013 when a client, who had only recently been accepted by the office, reported the matter.  Without any consideration, 8 million euros worth of property, placed with a legal entity organized and existing under the laws of the Seychelles, had been transferred to another party. It was not until April 2014 that the trust office reported the transfer to FIU-Netherlands.

The Tribunal agreed with DNB that, because of several suspicious aspects to the transfer, the trust office should have reported the transfer without delay as laid down in the provisions of the Dutch Money Laundering and Terrorist Financing (Prevention) Act (Wwft). The penalty of 40,000 euros has therefore been confirmed.

(See ECLI:NL:CBB:2018:6