AMLD V Implementation

In the context of the implementation process of AMLD V¹ , on 8 August 2019, the Luxembourg government introduced a draft Bill of Law² (“Bill of Law”), which notably amends the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (“AML Law”). 

Under the current version of the Bill of Law, major amendments to the AML Law will include, amongst others:

1. - extension of the scope of the AML Law to additional professionals, such as virtual assets service providers and, where the value of the transaction or a series of linked transactions amounts to EUR 10,000 or more, persons involved in the trading, intermediation and storing of works of art;
2. - extension of the category of “financial institutions” to all persons subject to CSSF supervision for anti-money laundering and counter terrorist financing (“AML/CTF”) purposes, thus harmonising the sanction regime, and in particular the administrative fines applicable to professionals supervised by the CSSF;
3. - specific enhanced due diligence measures for business relationships and transactions involving high risk countries³ ;
4. - addition of new factors potentially evidencing a higher risk in Annex IV of the AML Law⁴ ;
5. - harmonisation of powers, including the sanction regime, of supervisory authorities and self-regulatory bodies;
6. - enhanced national and international cooperation between Luxembourg and foreign competent authorities;
7. - enhanced protection of whistleblowers.

As well as implementing certain provisions of AMLD V, the Bill of Law also embeds in the AML Law certain provisions of (i) the Grand Ducal Regulation of 1 February 2010 providing details on certain provisions of the AML Law, as amended, and (ii), the CSSF Regulation 12-02 on AML/CTF (e.g. KYC documentation, internal controls and training of personnel). Furthermore, the Bill of Law enforces certain recommendations of the FATF⁵ (relating notably to due diligence obligations).

Finally but not least, no transition period is currently provided under the Bill of Law which, once adopted, would therefore be applicable four days after publication.