1. 

   CHAPTER 1

   Material scope of application

   Section 1

   Money laundering and terrorist financing offenses

   • 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

   Risks linked with the cross-border transaction of banking and financial business

2. 

   CHAPTER 2

   Personal scope of application

   Section 1

   Financial sector professionals operating in Luxembourg

   Section 2

   Application of professional obligations to foreign subsidiaries and branches of professionals operating in Luxembourg

   • 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

1. 

   CHAPTER 1

   Risk based approach

   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

2. 

   CHAPTER 2

   Obligations vis-à-vis customers

   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

3. 

   CHAPTER 3

   Enhanced customer due diligence obligations

   Section 1. Politically Exposed Persons

   • 1. The risk posed by a PEP

   • 2. Definition of a PEP

   • 3. Definition of family members and associates of PEP

   • 4. Obligations incumbent on professionals dealing with a PEP

   • 5. PEPs who no longer hold office

   Section 2. Correspondent banks

   • Section 3. High-risk third countries

   • Section 4. Examples of enhanced due diligence measures to be implemented, sector by sector

   • Section 5. Examples of enhanced due diligence measures to be implemented pursuant to CSSF Regulation No 12-02

4. 

   CHAPTER 4

   Practical application of due diligence measures

   Section 1. Third-party introducers

   Section 2. Outsourcing

5. 

   CHAPTER 5

   Simplified customer due diligence obligations

   Section 1: Money laundering risks lower than those covered by the Law

   Section 2: Suggestions for simplified due diligence measures

6. 

   CHAPTER 6

   Obligation to have an adequate internal organisation

   Section 1. Obligation to put in place written internal control and communication procedures

   Section 2. Obligation to provide training and awareness-raising for the personnel

   Section 3. Internal reporting of breaches of professional obligations

   Section 4. Obligation to have systems making it possible to respond to the authorities

7. 

   CHAPTER 7

   Obligation to cooperate with the authorities
8. 

   CHAPTER 8

   Obligations in the case of giro payments and transfers of funds

   Section 1. Compliance with Regulation (EU) 2015/847 on information accompanying transfers of funds

   • Subsection 1. Obligations of the payment service provider ("PSP") of the payer

     • 1. Information accompanying transfers of funds

     • 2. Transfers of funds within the Union

     • 3. Transfers of funds outside the Union

   • Subsection 2. Obligations of the payment service provider of the payee

     • 1. Detection of missing information concerning the payer or the payee

     • 2. Management of transfers of funds in respect of which information on the payer or payee is missing or incomplete

     • 3. Assessment and reporting

   • Subsection 3. Obligations of Intermediate Payment Service Providers ("PSPI")

     • 1. Retention of information on the payer and the payee accompanying the transfer

     • 2. Detection of missing information on the payer or payee

     • 3. Transfers of funds in respect of which information on the payer or payee is missing

     • 4. Assessment and reporting

   • Subsection 4. Information, data protection and retention of information

     • 1. Communication of information to the authorities

     • 2. Data protection

     • 3. Retention of information

   • Subsection 5. Sanctions

   Section 2. Fraud relating to transfers of funds: false transfer orders

Annexes

1. 

   Annex I

   Correlation table – FATF recommendations
2. 

   Annex II

   Survey of predicate offences to money laundering under Luxembourg law
3. 

   Annex III

   List of high-risk third countries and persons subject to restrictive financial measures
4. 

   Annex IV

   Useful links – additional references
5. 

   Annex V

   Documents – identification/verification of customers