Further specification of AML/CFT obligations

Professionals must update their AML/CFT policies and procedures to take account of recent modifications to the AML Grand-Ducal Regulation and AML CSSF Regulation and review the impact on their arrangements with delegates and agents.

Following the recent amendment of the AML legal framework in the context of the transposition of AMLD5 (see our Newsflash on this topic), two level two texts further specifying the obligations of professionals were published:

• Grand-ducal Regulation of 14 August 2020 amending Grand-ducal Regulation of 1 February 2010 providing details on certain provisions of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (“AML GDR”); and
• CSSF Regulation 20-05 of 14 August 2020 amending CSSF Regulation 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing (“AML CSSF Regulation”).

Coordinated versions of the AML GDR and the AML CSSF Regulation are available on the CSSF website.

In addition to changes tending to align wordings and references with the latest revisions of the AML Law, other key points notably include:

• clarifications on the tasks and duties of the person responsible for AML/CFT compliance at management level and the AML/CFT compliance officer;
• reinforcement of the oversight obligations on third parties to which implementation of certain AML/CFT professional obligations is delegated in the context of an outsourcing or agency relationship (e.g. enhancement of contractual requirements);
• enhanced requirements in terms of formalisation of the AML/CFT procedures;
• clarifications of CSSF expectations in terms of controls on investments (screening, risk analysis);
• precisions on KYC information to be gathered;
• further guidance with regard to simplified and enhanced due diligence measures as well as on mitigation measures applying to non face-to-face relationships.