Derdengeldenrekening

A third-party funds account is a bank account used by lawyers and notaries to receive and manage moneys belonging to third parties, such as clients. Such funds may not be commingled with the practitioner’s own assets, in accordance with the rules of the Dutch Bar Association and the Notaries Act.

The regime serves to safeguard the integrity of professional practice and to prevent third-party funds from being applied to the lawyer’s or notary’s personal or business purposes. In this way, clients’ interests are protected and the risk of loss of assets is minimised.

In practice, a third-party funds account is frequently used in connection with transactions, settlements, advances or escrow arrangements. The practitioner is required to maintain proper records and to render periodic accounts of movements on the account.