CSSF Updates AML/CTF FAQs For Individuals/Investors

On 15 November 2019, the CSSF published an updated version of the FAQs regarding anti-money laundering and counter terrorist financing ("AML/CTF") addressed to individuals/investors.

The twenty Q&As serve as guidance on the essential concepts and relevant players involved in the fight against money laundering and terrorist financing ("ML/TF") and include references to the relevant legal and regulatory texts with respect to AML/CTF applicable to the financial sector. They specify, inter alia:

1. the meaning of money laundering (and its stages) and terrorist financing;
2. the meaning of international financial sanctions within the context of the fight against terrorist financing;
3. the role of the Financial Action Task Force as an international AML/CTF standard-setter;
4. the reasons for the fight against ML/TF;
5. the concept of "politically exposed persons" and the risks related to them;
6. common fraud mechanisms to which investors may be directly exposed;
7. which authorities, investors/customers can contact in the event of a prejudice.

A set of Q&As is centred on the CSSF's role, explaining its responsibility for the preventive part of the fight against ML/TF, while the Financial Intelligence Unit of the Public Prosecutor's Office is competent from a criminal point of view. The CSSF's supervisory approach with respect to AML/CTF as well as its investigatory and sanctioning powers are also described.

Another set of Q&As explains the obligations of the professionals in the financial sector. They are required to comply with the obligations set out in AML/CTF texts, including those set out in Regulation (EU) 2015/847¹. Further indications as to when and what kind of information and documents they are obliged to obtain and keep in relation to clients are also given, with a focus on the requirements stemming from the aforementioned Regulation.

Footnote

1. Regulation (EU) 2015/847 of 20 May 2015 on information accompanying transfers of funds.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.