The Wet toezicht trustkantoren 2018 (Wtt 2018), or Act on the Supervision of Trust Offices 2018, is the Dutch law that requires trust offices to be licensed and supervised by De Nederlandsche Bank (DNB). It protects the integrity of the Dutch financial system by setting rules for companies that provide trust services, such as acting as a director or providing a registered office together with other services.
What the Law Requires
Anyone who provides trust services professionally or on a commercial basis needs a DNB licence before starting. Operating without one is prohibited. DNB inspects licensed trust offices, and it can impose cease-and-desist orders and administrative fines. Providing trust services without a licence is also an offence under the Dutch Economic Offences Act.
What It Means for a Licensed Trust Office
A trust office licensed under the Wtt 2018 must meet ongoing obligations, including:
- checking the identity of its clients and their ultimate beneficial owners (due diligence);
- establishing the source of funds where relevant;
- monitoring the relationship and reporting unusual transactions;
- maintaining sound and controlled business operations.
Why It Matters When You Choose a Provider
For a client, the Wtt 2018 means two things. First, you can check that a provider is licensed in DNB’s public register, as we explain in Which Dutch trust offices are licensed by DNB? Second, expect thorough onboarding questions. These checks are a legal requirement and a sign that the provider takes its duties seriously. Management and domiciliation services of this kind can only be provided by licensed firms. See also what to look for when choosing a provider.
Questions about this topic? Talk to Rolf Wemmi, Director of Corporate Clients at Local Management, via rolf@localmanagement.nl or +31 20 737 2217.