Rising importance of background checks on Russian beneficiaries of Dutch offshore trust structures

Monday 22 December 2014

Last week the Russian Federal Tax Service obtained information on the end beneficiary behind the nominal director of a Dutch company via an official request to the Dutch authorities. The request concerned the tax claim to the company “Avtotor-Management”.  The Dutch authorities upon request of the Russian Federal Tax Service disclosed information on the end beneficiary of a Dutch B.V. according to the agreement between the Kingdom of the Netherlands and the Russian Federation on the avoidance of double taxation dating to 1996.

This practical case means that the owners of offshore trust structures in the future can be disclosed to the Russian authorities upon their request.  Russian companies which use the jurisdiction of the Netherlands for aggressive tax optimization are now in the risk zone and might need to restructure their business. At the same time Dutch trust offices will have to pay more attention to compliance issues and conduct thorough and regular background checks on the Russian companies and individuals.

Lighthouse offers its clients a background check service. The initial background check covers the following topics:

  • Personal details
  • Overview of main professional activities, board positions, controlling stakes and/or investments
  • Prior criminal investigations or convictions
  • Business partners and ties
  • Overview of the press
  • Our conclusion based on the analysis of above facts in the Russian context

We can also provide regular updates on the background checks.

For more information please contact us at +7 495 9800979 or info@thelighthousegroup.ru

You can also read an article about compliance issues concerning Russian companies and individuals, written by Jeroen Ketting: view PDF

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