Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT)
Overview
As Luxembourg continues to establish itself as a leading global financial hub with a strategic geographical location and a strong financial sector, the professionals subject to the AML/CTF laws and regulations face an ever-increasing need for effective AML/CFT services and solutions. The increase of AML/CFT requirements are primarily driven by international standards set by organizations like the Financial Action Task Force (FATF) and by legislation adopted by the European Union, for which transposition into local legislation is ensured by the European Commission.
In this regard, Luxembourg has established supervisory authorities that are designated in the Article 1, point 16 of the Luxembourg AML Law of 12 November 2004 as amended, for their respective areas of supervision:
(i)The Commission de surveillance du secteur financier (the "CSSF");
(ii)The Commissariat aux assurances (the “CAA”);
(iii)The Administration de l'enregistrement, des domaines et de la TVA (the "AED").
Scope of application
The scope of application of the AML Law (including relevant CSSF Circular and Grand-Ducal Regulation) in Luxembourg is broad and encompasses various sectors and entities:
- Credit institutions and professionals of the financial sector;
- Insurance undertakings and professionals of the insurance sector;
- Certain pension funds;
- Undertakings for collective investment and investment companies in risk capital, as well as their management companies;
- Trust and company service providers;
- Persons carrying out family office activity;
- Statutory auditors, approved statutory auditors, audit firms and accountants;
- Real estate agents;
- Legal professional in the scope of certain activities (such as bailiffs, lawyers or notaries);
- Providers of gambling services;
- Operators in free zones authorised to carry out their activity;
- Persons trading goods where payments are made or received in cash in an amount of €10,000;
- Virtual asset services providers;
- Safekeeping or administration service providers; and
- Persons trading or acting as intermediaries in the trade of artworks.
In short
Luxembourg professionals subject to the AML/CTF laws and regulations are required to understand, assess their ML/TF inherent and residual risks (at least on an annual basis) and adopt policies and procedures adapted to the risks level identified.
Key topics:
How can Forvis Mazars help you in practice?
Based on the knowledge, expertise and competences developed in supporting the key actors in the Luxembourg market over the last years, Forvis Mazars can be your partner in the Advisory Services related to AML/CFT activities.
We provide among others, the following solutions:
- Perform AML/KYC/KYT file review (including remediation activities)
- Design or review your AML/CTF Policies & Procedures
- Design or review your ML/TF Risk Assessment or ML/TF Risk Appetite Statement
- Review the internal framework of AML/CTF roles and responsibilities and related controls
- Design or review the monitoring activities performed by your Compliance Officer / MLRO
- Assistance to the RR / RC (e.g., design or review of regular reporting)
- Design or review of AML/CTF risk-based approach for your customers / investors / investments
- Provide your Compliance Officer with constant on-demand support (“Hotline”)
- Provide annual AML/CTF training and awareness sessions
- Design or review of Transactions Monitoring / Name Screening activities
- Design or review of AML/CFT Due Diligence activities on service providers / delegates / business relationships (including KPIs and oversight dashboard)
Our Forvis Mazars Experts would be glad to assist you in complying with the existing requirements and to support you in remaining ahead of the curve.
Contact us:
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Gianfranco Mei Partner - Governance, Risk and Internal Control | Florian Gaudelet Manager - Governance, Risk and Internal Control |
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