Documents – identification/verification of customers

DOCUMENTARY FORM – documentation/retention of documents relating to customer due diligence (verification)

CUSTOMER – legal person	Copy	Original	Intervention/validation-certification by a third party (public authorities, public officers and others)
Powers of representation of AUTHORISED AGENTS:	X Delegation of power, articles of incorporation of the company or association, fund prospectus, order/instrument of appointment Art. 20(2) Reg. No 12-02		Depending on the risk assessment by the professional (intervention: lawyer, notary, local authority, administrative authority/emanation of the State, as the case may be)
VERIFICATION of the identity of the legal person	X Latest consolidated or up-to-date articles of incorporation (or an equivalent incorporation document) Extract/entry in the register of companies (or equivalent supporting evidence) In the case of associations or foundations recognised as being of public interest, see for example the relevant Grand-Ducal orders, decrees, association websites (…) Art. 19(1) Reg. No 12-02		X Commercial and Companies Register/national commercial registers/European Business Register Consultation by certified electronic means, true copies, extracts from the identity documents of the legal person/entity registered [instruments, articles of incorporation, annual accounts, collective proceedings, judgments, etc.] Certificate of company incorporation/certificate of legal validity of the company
SUPPLEMENTARY VERIFICATION of the identity of the legal person	X Verification of the information gathered from independent sources (internet, software, public and private databases) Art. 19(2) Reg. No 12-02	X Acknowledgements of receipt of registered letters (contact with companies) Art. 19(2) Reg. No 12-02	X Management report and latest accounts, certified by an approved statutory auditor (as the case may be) Document certifying that the company has not been dissolved/struck off the register/declared bankrupt/gone into liquidation Art. 19(2) Reg. No 12-02

CUSTOMER – legal person	Copy	Original	Intervention/validation-certification by a third party (public authorities, public officers and others)
Powers of AUTHORISED REPRESENTATIVES: Legal representatives of customers lacking legal capacity/minors	X Judgments/ family record books/birth certificates (…)		X Judgment of the competent guardianship/administration court Any supporting document issued by an administrative or public authority/emanation of the State
VERIFICATION of the identity of a customer who is a natural person	X Any document contained in e.g. the public (worldwide) register of authentic travel and identity documents online (Website of the European Council) https://www.consilium.europa.eu/prado/en/prado-start-page.html		X Official unexpired identity document (emanating from a public authority) certificate of authenticity drawn up by the professional after inspecting the original or by a third party Art. 18(1) Reg. No 12-02
SUPPLEMENTARY VERIFICATION of the identity of a customer who is a natural person and of his/her residence (where there is any doubt)	X Any relevant supporting document as required by the professional	X Acknowledgements of receipt of registered letters (contact with customers) Documents proving permanent domicile/residence: standard insurance document; municipal/housing tax bills/State subsidies – miscellaneous allowances; tax demands/salary slips/ pension statements/tax credits; Proof of dispensational tax status (RND, “au forfait”), tax identification number, self-certification; internet/mobile phone subscription; administrative summons/formal notice to pay/perform/comply (…)

DOCUMENTARY DATABASES FOR CARRYING OUT CUSTOMER DUE DILIGENCE:

– The Luxembourg Ministry of Foreign and European Affairs provides comprehensive information regarding the list of travel documents approved by the European Commission and recognised by the Member States parties to the Schengen agreement. This contains:

(i) Travel documents issued by third countries and territorial entities (Part I)

The above link indicates, above all, the official identity documents (for natural persons) authorised in third States.

– The European Council’s (worldwide) “PRADO” public register of authentic identity and travel documents online lists, and make it possible to search for, documents by country of issue or by document title.

This tool is very comprehensive and may prove particularly useful in helping to assess the authenticity of identity documents issued by third countries. It includes the references and photos necessary for a practical assessment by a professional:

https://www.consilium.europa.eu/prado/en/prado-documents/are/b/o/docs-per-type.html

(see also the French version)

The French decree of 16 April 2014 fixing the list of supporting documents for exercising the right to hold an account with the Banque de France (Official Journal of the French Republic No 0106 of 7 May 2014, page 7762) provides a long list of documents proving identity/domicile for the purposes of the exercise that right, both by natural persons and by legal persons.

Professionals may find it useful to refer thereto for the purposes of supplementing their list of supporting documents:

https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028905503&categorieLien=id

– Luxembourg legal literature proposes, notably, a series of elements for identifying and verifying the identity of customers who are natural persons and customers who are legal persons

See “Check List des documents d’identification et de vérification” (“Checklist of identification and verification documents” in La lutte contre le blanchiment d’argent by Thierry POULIQUEN, Éditions Promoculture Larcier (p. 399).

The UK’s Joint Money Laundering Steering Group has issued AML/CFT guidance, part of which refers to documents allowing the identity of customers who are natural persons to be verified.

Seehttp://www.jmlsg.org.uk/, point 5.3.73 et seq. of the initial guide.

It states very clearly that these may emanate from either:

(i) an official document issued by the State administration (“government-issued document”) which incorporates the individual’s full name and photograph AND:

either his/her residential address; or
his/her date of birth.

For example: a valid passport, valid driving licence, national identity card, firearms certificate or shotgun licence, voter’s card; or

(ii) a government, court or local authority-issued document not including an identity photograph but incorporating the customer’s full name,

supported by a second document, either government-issued or issued by a judicial authority, a public-sector body or authority, a regulated utility company, or an entity regulated by the banking/financial sector supervisory authority (FCA), which incorporates:
the customer’s residential address; or
his/her date of birth

For example: a valid driving licence, an administrative document/certificate evidencing entitlement to a benefit (housing/tax credit/retirement pension/educational or other grant, etc.), summons/record of service of process/ formal notice to pay/perform/comply, council tax demand letter or statement, etc.

CHAPTER 1

CHAPTER 2

CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 4

CHAPTER 5

CHAPTER 6

CHAPTER 7

CHAPTER 8

Annex I

Annex II

Annex III

Annex IV

Annex V

index

Preface

index

Preface

PART 1

CHAPTER 1

Section 1

1. Predicate offences

2. The elements constituting the offence of money laundering

2.1 The material element

2.2 The element of intent

3. Elements specific to certain predicate offences

3.1 The offence of terrorist financing

3.2 Tax crimes

4. From the original suspicion to the reporting of a suspicious operation

4.1 The notion of suspicion

4.2 The origins of suspicion

4.3 Examples of suspected money laundering

4.4 Summary of the reporting process

Section 2

CHAPTER 2

Section 1

Section 2

1. General principle

1.1 In a Member State

1.2 “Abroad”: in a third State

2. Subsidiaries and branches established in third countries whose rules do not permit the application of equivalent measures

2.1 Individual AML/CFT assessments

2.2 Customer data sharing and processing

2.3 Intra-group disclosure of information related to suspicious transactions

2.4 Transfer of customer data to Member States in the context of AML / CFT supervision

PART 2

CHAPTER 1

Section 1. Identification and assessment of risks

Subsection 1. Factors and elements indicative of a potentially higher risk as referred to in Article 3-2(I), second subparagraph of the Law

1.1 Risk factors inherent in customers

1.2 Risk factors linked to products/services/transactions/distribution channels

1.3 Geographical risk factors

1.4 International financial sanctions

1.5 Risks surrounding Virtual Assets (a.k.a. crypto assets) and Virtual Asset Service Providers

1.6 COVID 19 Threats

Section 2. Management and mitigation of risks

2.1 Reminder of the statutory and regulatory provisions of Article 4 of the Law and of CSSF Regulation No 12-02

2.2 Summary table of key elements of risk mitigation

2.3 Mitigation of specific risk factors according to the business sectors concerned

CHAPTER 2

Section 1. Customer due diligence measures

Subsection 1. The acceptance process

1. Policy for accepting new customers

2. Identification of customers and verification of their identity

Subsection 2. Identification and verification of the identity of the beneficial owners

I - Definition of the concept of beneficial owner

II - Identification of the beneficial owner(s) in certain specific cases

III - Measures to identify and verify the identity of the beneficial owners

Subsection 3. Obtaining information on the purpose and intended nature of the business relationship, including the origin of funds

Subsection 4. Exercise of ongoing due diligence in respect of the business relationship and the updating of the documents, data and information held

1. General considerations

2. Assessment of transactions and the detection of complex operations and unusual transactions

3 Activities requiring particular attention

4 Keeping documents and information up to date

5. Retention of documents and protection of personal data

CHAPTER 3

Section 1. Politically Exposed Persons

1. The risk posed by a PEP

2. Definition of a PEP