Let’s get into details of recent Annual report from the #CSSF.
1. shortcomings in terms of frequency and documentation of controls in respect of the #identification of the persons, entities and groups subject to prohibitions or #restrictive measures in financial matters, as provided for in Article 33 of CSSF Regulation No 12-02; – short story long DO YOUR #sanctionsscreening
2. weaknesses in customer #duediligence measures, as required by Article 3 of the Law of 12 November 2004 on AML/CFT, and insufficient application of enhanced due diligence on intermediaries, as required by Article 3 of CSSF Regulation No 12-02; – and once again #cdd as well as proper ADEQUATE #edd on #intermediaries (here please let’s not forget direct #investors and not confuse with #nominees)
3. weaknesses in the #riskassessment as provided for in Article 2-2 of the Law of 12 November 2004 on #amlcft and in #circular CSSF 11/529; – let’s check this one here and discuss later your OBLIGATION to perform AML/CFT risk assessment business wide and individual one:
“Article 2-2. Obligation to perform a risk assessment (short version):
(1) The professionals shall take appropriate steps to identify, assess “and understand” the risks of money laundering and terrorist financing that they face, taking into account risk factors including those relating to their #customers, #countries or geographic areas, #products, #services, #transactions or #deliverychannels. Those steps shall be #proportionate to the nature and size of the professionals.
(2) “The professionals shall consider all relevant risk factors before determining the overall risk level and the level and type of appropriate measures to apply in order to manage and mitigate these risks.
The professionals shall document, keep up-to-date and make the risk assessments referred to in paragraph 1 available to the supervisory authorities and self- regulatory bodies.
5. shortcomings concerning work carried out by the #complianceofficer in charge of the control of compliance with the professional obligations and the independent #audit function; – be careful while being appointed as #rc as this is not just a title, but the obligation also. Sometimes proportionality principle can play other way around.
6. failures regarding key performance indicators enabling the ongoing monitoring by IFMs of the activities #delegated to registrar and transfer agents in accordance with the requirements of point 466 of Circular CSSF 18/698. – ensure PROPER #kpis in respect fo the #delegates.
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