Obligation for professionals to cooperate in the fight against money laundering and the financing of terrorism
Last update
Many professional sectors are confronted with unusual transactions carried by the clients or potential clients with the aim of laundering money or financing terrorism.
In this context, the Registration Duties, Estates and VAT Authority (Administration de l'enregistrement, des domaines et de la TVA - AED) has the role of supervising, monitoring and controlling the professionals.
Owing to the AED's control mission, professionals are held to implement customer due diligence measures along with internal procedures that enable them to fight money laundering and the financing of terrorism effectively.
Who is concerned
Professionals falling under the AED's jurisdiction are required to provide all information required to combat money laundering and the financing of terrorism.
These professionals can be:
- persons (legal or natural) who exercise a tax consultancy or economic consultancy activity;
- persons (legal or natural) who provide services to corporations or trust companies;
- gambling and games of chance service providers;
- operators in the free trade zone (Niederanven commune, section B Senningen, the place called Parishaff, L-2315 Senningerberg);
- the persons (natural or legal) who trade in goods, to the extent that payments are made or received in cash in the amount of at least EUR 10,000, regardless of whether the transaction is carried out in a single operation or in several operations which seem to be linked;
- accounting professionals;
- real estate agents established or working in Luxembourg.
Deadlines
The professionals concerned are required to respond to the questionnaire within a maximum of 4 weeks following the request from the AED.
They will be notified by post of their obligation to complete and transmit the questionnaire within the deadline, and according to the terms presented below.
How to proceed
Obligations
Professionals are subject to a number of obligations:
- constant vigilance towards customers: these may be simplified or enhanced obligations;
- the implementation of an adequate internal structure including a risk assessment;
- cooperation with the supervisory and judicial authorities.
As part of their obligation to cooperate with the judicial authorities, the professionals are in particular obliged to inform the Financial Information Unit (Cellule de renseignement financier - CRF) without delay as soon as they find out, suspect or have good reason to suspect that money laundering or terrorist financing activities are happening.
In its mission of control and supervision of professionals, the AED will request the professionals concerned to fill out a mandatory questionnaire that includes:
- the different measures put in place within the structure in order to enforce the due diligence obligations;
- the fact that an adequate internal organisation to combat money laundering and the financing of terrorism has been set up (appointment of a professional compliance officer, etc.);
- if the professional has already reported suspicious transactions to the CRF, etc.
The professional must also provide information such as:
- the personal details of the contact person;
- their managers;
- their turnover;
- the number of employees;
- the knowledge of their customers as well as the methods of financing the transactions made by their customers (without indicating their names);
- the existence of an appropriate internal organisation.
Transmission of the questionnaire
The questionnaire to be sent to the AED can be completed and transmitted via a specific online assistant available on MyGuichet.lu, using a LuxTrust certificate.
Note that the questionnaire must be completed and sent by the AML (anti-money laundering) officer or by a person duly authorised to submit this questionnaire.
Supporting documents
The transmission of the questionnaire to the AED must be accompanied by the available supporting documents, among which:
- a copy of the risk analysis model;
- a copy of the document proving the appointment of a manager/compliance officer;
- a copy of the internal procedure put in place.
Sanctions
In the event of non-compliance with due diligence requirements, proper internal organisation or cooperation with the supervisory authorities, including the AED, various administrative measures and sanctions may be taken against the professional at fault, such as:
- a warning;
- a reprimand;
- administrative fines;
- a possible withdrawal of the business permit. As a matter of fact, the AED works closely with the Minister of the Economy: on the reasoned opinion of the Director of the AED, as soon as the non-compliance with the obligations of the fight against money laundering and the financing of terrorism affects the professional integrity of the manager, the Minister may decide on the permanent or temporary withdrawal of the business permit until further notice from the Director of the AED.
Online services and forms
Who to contact
Financial Crime Unit
-
Registration Duties, Estates and VAT Authority (AED) Financial Crime Unit
- Address:
-
308, route d'Esch
L-1471
Luxembourg
Luxembourg
B.P. 31 L-2010 Luxembourg
- Phone:
- (+352) 247 80 800
- Fax:
- (+352) 247 90 400
- Email address:
- blanchiment@en.etat.lu
Financial Intelligence Unit (FIU)
-
Prosecutor General’s Office Financial Intelligence Unit (CRF)
- Address:
-
Luxembourg
Luxembourg
L-2080 Luxembourg
- Phone:
- (+352) 47 59 81 24 47
- Email address:
- crf@justice.etat.lu
Related procedures and links
Procedures
Links
Legal references
-
Loi modifiée du 12 novembre 2004
relative à la lutte contre le blanchiment et contre le financement du terrorisme
-
Règlement grand-ducal modifié du 1er février 2010
portant précision de certaines dispositions de la loi modifiée du 12 novembre 2004 relative à la lutte contre le blanchiment et contre le financement du terrorisme
