Compliance & AML/CTF

AML Directive 2018/2043, provisions added concerning real estate agents

The 5th AML Directive 2018/843 dated 30 May 2018 was transposed in Luxembourg last year with the law of 25 March 2020. Some additional provisions have been added with the law dated on 25 February 2021 concerning among other real estate agents. 

Furthermore, the initial National risk assessment done on 2018 on the activities and the professionals in Luxembourg, as regards AML-CTF risks, was updated on December 2020. 

Two points have to be highlighted:

·       The powers of the self-regulatory bodies have been reinforced with the new law of 2020, amending AML law of 12 November 2004.

·       The National risk assessment have classified some professionals and activities as presenting AML-CTF high risk such as real estate agents, lawyers, chartered accountants and trust and corporate services that can  be offered by these professionals.

Be aware of the AML-CTF professional obligations

The self- regulated professionals such as dealers in goods, real estate agents, accountants, tax advisors, chartered accountants and lawyers have to be aware of their AML-CTF professional obligations and attending trainings is key. The professionals have also the obligation to make an internal AML-CTF risk assessment of their clients, activities and services provided. They need to ensure effectiveness of their internal measures in order to mitigate the AML-CTF risks.

The AML-CTF inspections done by controllers of AED, OEC and Barreau, verify the effectiveness of these measures. They also do not hesitate to impose fines to the professionals and the amount can vary depending on breaches observed.

The pressure on the market can be explained by the next FATF mutual evaluation of Luxembourg, initially planned on November 2020, was postponed in October 2021.  There is still an uncertainty on the visit date due to the pandemic crisis still going on. 

The challenge is to preserve the reputation of the financial market in Luxembourg and these professionals, have a key role to play on the effectiveness of their internal controls and measures.

To be continued…

Please find attached the article of Paperjam dated on 5th of May 2021 in French.