Circular CSSF 20/744 is a CSSF circular, published 3 July 2020. Subject: Complement to Circular CSSF 17/650 “Application of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (hereinafter “AML/CFT Law”) and Grand-ducal Regulation of 1 February 2010 providing details on certain provisions of the AML/CFT Law (“AML/CFT GDR”) to predicate tax offences”.
\nLegal basis: Law of 12 November 2004 on anti-money laundering.
\nRelevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Credit institutions, Credit servicers, Data Reporting Service Providers (DRSPs), E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Payment institutions/electronic money institutions/AISPs, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS, Virtual asset service providers (VASPs).
\nMain topic: Financial crime. Keywords: AML/CFT.
\nAmends Circular CSSF 17/650.
\nCircular CSSF 20/744 COMPLEMENT TO CIRCULAR CSSF 17/650 “APPLICATION OF THE LAW OF 12 NOVEMBER
\n2004 ON THE FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING, AS AMENDED (HEREINAFTER
\n“AML/CFT LAW”) AND GRANDDUCAL REGULATION OF 1
\nFEBRUARY 2010 PROVIDING DETAILS ON CERTAIN PROVISIONS OF THE AML/CFT
\nLAW (“AML/CFT GDR”) TO PREDICATE TAX OFFENCES”
\nCircular CSSF 20/744 Re: Complement to Circular CSSF 17/650 “Application of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (hereinafter “AML/CFT Law”) and Grand-ducal Regulation of 1 February 2010 providing details on certain provisions of the AML/CFT Law (“AML/CFT GDR”) to predicate tax offences”
\nLadies and Gentlemen,
\nLuxembourg, 3 July 2020
\nThe purpose of this circular is to complement Circular CSSF 17/650 of To all the persons and entities
\n17 February 2017 which provides for guidance on the extension of the offence
\nunder the supervision of the
\nof money laundering to aggravated tax fraud (fraude fiscale aggravée) and tax
\nCSSF
\nevasion (escroquerie fiscale) and on applicable anti-money laundering and counter-terrorist financing (“AML/CFT”) professional obligations. The amendments concern only Annex 1 of Circular CSSF 17/650 and provide for new indicators to be taken into account in the context of collective investment activities (under a newly added title II.). Thus, Annex 1 of Circular CSSF 17/650 currently providing for a list of common indicators applicable to all professionals under the AML/CFT supervision of the CSSF (with the new title I. Common indicators), will be completed with an additional list of indicators specific to the collective investment activities and to professionals providing services in that particular sector (under the new title II. Specific indicators concerning collective investment activities). CSSF expects professionals under its AML/CFT supervision to take these new indicators, where relevant, into account in their risk assessment and when designing risk mitigation measures proportionate to their risk exposure within the specific context of collective investment activities. Pursuant to these modifications, Annex 1 of circular CSSF 17/650 should be replaced with the following text:
\n“Annex 1 List of indicators concerning the professional obligation to report suspicions regarding the predicate offence of laundering of an aggravated tax fraud or tax evasion This annex provides a list of indicators likely to reveal a possible laundering of a predicate tax offence to the professionals of the financial sector subject to the AML/CFT supervision of the CSSF. The professional shall respect the following steps: • If an indicator or a combination of indicators raises doubts, the professional shall examine the business relationship/transaction more thoroughly in order to verify if doubts are justified given the context of the transactions and the professional’s knowledge of the customer’s situation (KYC and KYT).
\n• Where doubts remain, the professional shall report the suspicions to the FIU. A single indicator, or even several indicators, are not necessarily sufficient grounds for raising a suspicion of laundering. It must be noted that the following examples of indicators are neither exhaustive, nor do they exclude other criteria, and that they may change over time.
\nI. Common indicators (“List I.”) (1) The customer is a legal person or a legal arrangement set up in a jurisdiction that is not subject to AEOI/CRS/FATCA reporting 10 and this “entity” has no economic, asset or other reality, except where (1) the customer demonstrates that its establishment complies with the legal provisions of the country of residence of the customer/beneficial owner or (2) the existence of the entity is in effect known to the tax authorities of the country of residence of the beneficial owner based on supporting evidence.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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