Four-eyes principle not without obligation

The internal audit obligation is not optional, as it is standardized in a regulation linked to supervision and disciplinary law. This is the response of Minister Ferd Grapperhaus (Justice and Security) to parliamentary questions from the Socialist Party (SP). The questions were prompted by the multi-million dollar fraud committed by a civil-law notary at the State Attorney's office.

Michiel van Nispen and Renske Leijten (both Socialist Party) asked the minister how this fraud could have happened and wanted to know more about the supervision of the notary profession. According to Grapperhaus, the resources for supervision and investigation are limited. Prioritization is essential. This applies to both the Financial Supervision Office (BFT) and the investigative services. The BFT analyzes the risks based on signals and thus sets priorities. "There is no reason to assume that the BFT has insufficient capacity for its tasks," the minister wrote . "Substantial investments have been made in the BFT in recent years."

Not without obligation
Both MPs also question the four-eye principle. It might be too permissive, as notary offices are required to arrange this themselves. Grapperhaus disagrees. He refers to the Administrative Regulations of the Royal Dutch Association of Civil-Law Notaries (KNB), which govern the internal audit obligations of civil-law notaries. This regulation is also linked to supervision and disciplinary law.

Changes
Because both the criminal investigation and the BFT investigation are still ongoing, the Minister cannot yet say exactly what went wrong at the State Attorney's office. He will, however, ask Pels Rijcken how the office has implemented the four-eyes principle and what changes, if any, are being made. Grapperhaus will also ask the office about the use of digital control mechanisms.

Modernization of supervision
The use of digital control mechanisms is one of the components of the modernization of the supervision of the notarial profession. A joint working group of the BFT and KNB published a report on this topic in 2019. The BFT and KNB aim to establish a new information model that is GDPR-compliant and in which data on notary offices – centrally stored and available – can be used for both assessment and supervision. This should make the procedures surrounding assessment and supervision more effective and efficient.