Our clients consist of banks, trust offices, lawyer’s offices, estate agents, payment institutions and local authorities. We make sure that their files comply with international AML laws through research, validation and audits.
The EU’s fourth Money Laundering Directive and Dutch WWFT require banks to investigate their clients’ integrity. The research into (larger) companies, carried out by departments Corporate, Commercial and Wholesale Banking, and into people of substance is a time-consuming and labour-intensive enterprise. We carry out these investigations for them, so that the banks can focus on their core activities.
Dependent on the compliance policy and risk findings we investigate the client, its activities and revenues. If it concerns a company, we also investigate directors and ultimate beneficiary owners (UBOs). We screen for sanction lists, politically exposed persons (PEP’s), bad press and, if necessary, connections and related activities. Thanks to our experience with many international banks, we are well aware of the current best practices. That is how we help banks learn from each other.
In the Netherlands, the supervision on trust offices’ integrity is pursuant to the Supervision of Trust Offices Act (Wet toezicht trustkantoren, Wtt) as well as the Regulation on ethical operational management(Regeling integere bedrijfsvoering Wtt, Rib). Trust offices’ CDD/KYC activities are increasingly monitored by the De Nederlandsche Bank (Dutch central bank), requiring a division of operational and control management. In conjunction with and independent of other parties KCP takes care of execution, compliance and audit.
Trust offices have to carry out in-depth research following strict rules, usually requiring the account manager to fill out lengthy questionnaires and to collect many documents. KCP unburdens the trust office and its clients by collecting the required documentation on the ultimate beneficial owner (UBO) and its underlying structure from public (independent) sources. Based on this information and additional data provided by the account manager, KCP carries out a thorough integrity risk analysis for the purpose of client acceptance and periodical review.
We advise and carry out client research for lawyers who provide services that resort under the WWFT (Dutch AML laws). Outsourcing the meticulous client research to KCP enables the lawyers to focus on acting for their clients. We make sure the files contain the right information and give advice concerning the risk assessment upon thorough analysis.
Should it concern clients for whom “light” KYC suffices, our research will consist op the following elements:
- Research into ultimate beneficial owners (UBO)
- Screening – bad press, sanctions, politically exposed persons (PEP’s)
- Risk factors
- Risk assessment and advice regarding risk categories
REAL ESTATE AGENTS
Estate agents in commercial real estate are subject to the WWFT (Dutch AML) and are obliged to carry out client research. We ensure that estate agents manage their risks and comply with legal requirements. By carrying out their client research for them, we enable them to focus on their commercial activities. Additionally, we carry out background integrity checks of potential buyers and sellers.
Our client research contains at least:
- client identification and verification, including its directors’, if need be, and identification and risk-based verification of the ultimate beneficial owner (UBO)
- assessment of the purpose and nature of the intended business relationship
Furthermore, we recommend screening the relation for country risk, business activities, bad press, sanctions and PEP.
payment institutions or PSP’S (PAYMENT SERVICE PROVIDERS)
A payment institution is a payment service provider that has been issued a permit to do so by De Nederlandsche Bank. The payment institutions are obliged to carry out KYC for the acceptance and periodical monitoring of merchants.
For payment institutions we usually identify the risk factors (country, business activities, etc) concerning the merchant and, based on our findings, recommend either acceptance or more in-depth research. It goes without saying that we also identify UBOs and carry out sanction- an PEP-checks concerning merchants and UBOs.