The AED1 issued, on 28 July 2025, its Circular N° 792 ter dated as of same day (the "New AED Circular" – available through this hyperlink – only in French). The New AED Circular applies to all professionals subject to the AML/CFT2 supervision by the AED3 and aims at reflecting the AED's expectations in terms of identification and verification of the identity of natural person customers4 for AML/CFT due diligence purposes under the AML Law5.
In a nutshell, the New AED Circular recalls the overarching distinction, deriving from the AML Law, between the notions of identification and verification of identity of the customer, relaying the AED's understanding of these notions and the obligation for the professionals to be in position to provide evidence of compliance with the related due diligence obligations. The New AED Circular notably stresses the risk-based approach principle, at the level of both the identification and the verification of identity and details the AED's expectations in terms of e.g. identification means, content and language requirements applicable to the identification documents gathered in this context.
Lastly, interestingly, the New AED Circular explicitly refers to authentication (i.e. certification of conformity) by a competent and independent authority, stating that such an authentication is distinct from the notion of certification by the professional and may also be retained as identification verification means.
Should you wish to receive more information in respect of the above, please feel free to reach out to your usual contact persons at Elvinger Hoss Prussen.
1. The Administration de l'enregistrement, des domaines et de la TVA (the "AED").
2. Means anti-money laundering and counter financing of terrorism.
3. Including, without limitation, Luxembourg alternative investment funds not subject to the supervision of the Commission de Surveillance du Secteur Financier (the "CSSF").
4. which, for investment funds, includes investors inscribed in the fund's register.
5. The Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (the "AML Law").
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.
