DLL Legal is required under the Dutch Anti-Money Laundering and Counter-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme) (“WWFT“) and the Sanctions Act 1977 to apply specific due diligence and monitoring measures when entering into and conducting client engagements. These obligations are designed to protect the integrity of the financial system by preventing money laundering, terrorist financing, and related criminal activities.

Before commencing any services, DLL Legal must conduct a client due diligence (CDD) investigation. This includes:

• establishing and verifying the identity of the client;
• identifying and verifying the ultimate beneficial owner (UBO) of legal entities;
• assessing the ownership and control structure of the client;
• determining whether the client or UBO qualifies as a politically exposed person (PEP);
• assessing the purpose and intended nature of the engagement;
• evaluating the risk of money laundering or terrorist financing.

Enhanced or supplementary due diligence will be performed where legally required.

Information and Documentation Required From Clients

To comply with the WWFT, DLL Legal is required to obtain and verify certain information and documents from clients. The nature of the information depends on whether the client is a natural person or a legal entity.

1. Natural persons (individual clients)

For individuals, DLL Legal must obtain:

• proof of identity (valid passport, national identity card, or equivalent internationally recognised identification document);
• residential address information;
• information regarding the purpose and intended nature of the engagement;
• information necessary to establish whether the individual is a politically exposed person (PEP);
• any additional information if enhanced due diligence is required (e.g. source of funds or source of wealth).

2. Legal entities (companies, foundations, partnerships)

For legal entities, DLL Legal must obtain:

• incorporation documents, such as an extract from the trade register or equivalent;
• constitutional documents (e.g., articles of association);
• identification details of directors and authorised representatives;
• identification of the ultimate beneficial owner (UBO), including:
  • name, date of birth, nationality, and address;
  • nature and extent of beneficial interest or control;
• information regarding the ownership and organisational structure of the entity;
• information about the purpose and intended nature of the engagement;
• information required to determine whether any directors, UBOs, or representatives are politically exposed persons (PEPs);
• where enhanced due diligence is required, documents or statements concerning source of funds or source of wealth.

3. Additional documentation in higher-risk matters

When a matter presents an increased risk due to the nature of the transaction, the jurisdiction involved, the structure of the entity, or other risk indicators, DLL Legal may also be required to request:

• financial statements or corporate records;
• documentation evidencing the economic rationale of the transaction;
• information on third parties involved in the transaction;
• bank statements or payment instructions to verify financial flows;
• other information deemed necessary to comply with statutory obligations.

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When is DLL Legal required to conduct an AML/CFT (WWFT) check?

An AML/CFT investigation is mandatory whenever the services provided fall within the scope of the WWFT. This applies particularly to legal services involving financial transactions, structuring activities, or certain designated corporate or real estate transactions.

1. Financial transactions or the movement of funds

This includes:

• incorporation or management of companies or legal entities;
• management of funds, securities or assets for a client;
• corporate transactions involving the acquisition or sale of businesses or shares;
• financing arrangements and investment structures involving fund flows.

2. Structuring of legal entities or corporate arrangements

This includes:

• incorporation of companies or foundations;
• restructuring of shareholdings, UBO arrangements, or control structures;
• cross-border corporate or holding structures;
• reorganisations involving asset or share transfers.

3. WWFT-designated client transactions

This includes:

• commercial real estate acquisitions or disposals;
• opening or administering bank, payment, or investment accounts;
• managing funds, securities, or assets;
• organising contributions, acquisitions, or disposals of shares or assets.

4. Exemption for core legal services

The WWFT does not apply to legal representation in court proceedings, legal assistance in preparing for proceedings, or advice directly relating to a dispute.

The WWFT does apply to transactional components of mixed mandates.

5. Risk-based assessment

Where uncertainty exists, a risk-based assessment is mandatory. DLL Legal will determine whether a WWFT investigation is required and may request additional information accordingly.

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Ongoing Monitoring

DLL Legal may request supplementary information during the engagement when developments justify further assessment, in accordance with the statutory duty of continuous monitoring.

Reporting of Unusual Transactions

If a transaction is considered unusual based on WWFT indicators, DLL Legal must report this to the Financial Intelligence Unit – the Netherlands (FIU-Netherlands). Due to statutory prohibitions, clients cannot be informed of such reports.

Data Processing

All data collected for WWFT purposes is processed in accordance with the General Data Protection Regulation (GDPR) and applicable professional rules. Data is used solely for compliance with statutory obligations and is retained only for legally required periods.

Refusal or Termination of Services

If client due diligence cannot be completed or if the engagement presents an unacceptable risk under the WWFT, DLL Legal shall be required to refuse or terminate the engagement.