Zenco fined for failing to commission audits
Following a ruling by the Trade and Industry Appeals Tribunal (College van Beroep voor het bedrijfsleven - CBb), De Nederlandsche Bank (DNB) announces that on 15 October 2020 it imposed a fine of €75,000 on Zenco Corporate Services B.V. (ZCS), and fines of €25,000 each on Zenco Management B.V. (ZM), Zenco Custodian & Management B.V. (ZCM) and Zencotrust B.V. (ZT), hereinafter collectively referred to as Zenco. The fines were imposed for Zenco's failure to commission audits during the period from 1 January 2017 to 27 January 2020.
© DNB
Non-compliance
Under the Act on the Supervision of Trust Offices 2018 (Wet toezicht trustkantoren 2018 – Wtt 2018) and its precursor, the Act on the Supervision of Trust Offices (Wet toezicht trustkantoren – Wtt), trust offices (including Zenco) are required to be audited at least once a year. It is important for trust offices to conduct an annual audit as an additional safeguard of their sound and ethical operational management. The audit verifies the trust office's compliance with laws and regulations, and it checks the performance of the trust office's compliance function.
DNB found that Zenco did not commission any audits during the period from 1 January 2017 to 27 January 2020. Zenco was thus in non-compliance with the Wtt 2018 and the Wtt. For this reason, DNB imposed the above-mentioned fines on Zenco.
Objection, appeal and further appeal
Zenco lodged objections, appeals and further appeals against the fines imposed. Ultimately, the fine for ZCS was set at €72,500, the fine for ZM at €23,750 and the fines for ZT and ZCM at €9,500.
Read the full decisions here (confidential information has been excluded). You can also contact our Information Desk by telephone on 0800 020 1068 (freephone in the Netherlands) or +31 20 524 9111 (if calling from abroad).
Beslissing op bezwaar - Zenco
Boetebesluit Zenco Management B.V.
Boetebesluit Zenco Custodian & Management B.V.
Boetebesluit Zenco Corporate Services B.V.
Boetebesluit Zencotrust B.V.
Table Current situation of proceedings – administrative fines Zenco