Luxembourg implements 5th Anti-Money Laundering Directive
The purpose of this Law is in particular to provide certain amendments to the Law of 12 November 2004 on the fight against money laundering and the financing of terrorism.
On 21 March 2020, the Luxembourg Chamber of Deputies adopted1 bill of law 7467 (the Law) transposing certain provisions of the 5th Anti-Money Laundering Directive (AMLD 5).
The purpose of this Law is in particular to provide certain amendments to the Law of 12 November 2004 on the fight against money laundering and the financing of terrorism (the 2004 Law), in order to transpose the main provisions of AMLD 5 and to include certain recommendations from the financial action task force (FATF).
In a nutshell, the Law provides for:
- an extension of the circle of “professionals” to whom the 2004 Law applies, so as to include in particular virtual currency providers and custodian wallet providers;
- enhanced customer due diligence measures to be performed in the context of business relationship involving high-risk third countries;
- the creation of a list of national public offices and functions that qualify as “politically exposed”;
- clarification of the concept of “control by other means”, in the context of determining beneficial owners;
- an obligation for professionals to consult the relevant companies / trust beneficial owner register when entering into a business relationship. Note in this respect that although the Law includes no transitory provision, one may reasonably expect that such obligation only applies once the relevant register is available;
- an obligation to understand the purpose and nature of every business relationship (in line with the 10th FATF recommendation);
- a broader scope of the enhanced due diligence (and an increase of the powers of the competent authorities) especially when high-risk third countries are involved; and
- an extension of the list of factors and types of evidence of potentially higher risks in annex IV of the 2004 Law.
1First constitutional vote. A request to dispense with the second vote required by the Constitution has been filed.
Marc MeyersPartner Attorney at Law / Avocat à la Cour
Marc Meyers, partner, heads the Investment Management Practice Group in our Luxembourg office. He focuses on the structuring and regulatory work for Luxembourg alternative investment fund structures.T: +352 466 230 306 E: firstname.lastname@example.org
Pieter LeguitLocal Partner Attorney at law
Pieter R Leguit, local partner, is a member of the Investment Management Practice Group in our Luxembourg office. He focuses on alternative investment funds, in particular private equity and real estate funds.T: +352 466 230 215 E: email@example.com
Christophe BoyerLocal Partner Attorney at law
Christophe Boyer, local partner, is a member of the Investment Management Practice Group in our Luxembourg office. He focuses on fund structuring and alternative funds, such as hedge funds, and on private equity funds and new innovative fund products.T: +352 466 230 442 E: firstname.lastname@example.org
Michael SchweigerLocal Partner Attorney at law / Avocat à la Cour / Solicitor
Michael Schweiger, local partner, is a member of the Banking & Finance practice group in our Luxembourg office. He leads the Luxembourg financial regulatory team and regularly advises banks, e-money and payment institutions, insurers, and other clients regarding financial regulation.T: +352 466 230 520 E: email@example.com
Adrien PierreSenior Associate Attorney at law / Avocat à la Cour
Adrien Pierre, senior associate, is a member of the Banking & Finance Practice Group in our Luxembourg office. He advises banks, asset managers, fintechs, payment institutions, insurance companies and other financial institutions on regulatory matters.T: +352 466 230 523 E: firstname.lastname@example.org
Anne KlethiAssociate Tax adviser / Attorney at law / Avocat à la Cour
Anne Klethi, associate, is a member of the Tax Practice Group in our Luxembourg office. She focuses on international tax matters, notably for private wealth investors, and tax litigation.T: +352 466 230 312 E: email@example.com