AML : Clarifications on the identification of the Ultimate Beneficial Owner(s)

Assistance in identifying your ultimate beneficial owners according to the new circular ? 

Published on 20 December 2019, the circular aims to provide guidance to all professionals subject to AML/CFT supervision of the CSSF in relation to the legal requirements applicable to the identification and verification of the identity of the ultimate beneficial owner with a view to enhancing financial transparency.

Firstly, the circular outlines the requirements for identifying the ultimate beneficial owner for customers that are either natural persons, legal persons or legal arrangements. Next, the circular lays out the related verification measures.

Lastly, the circular sets out a number of useful indicators to help detect potential concealment of beneficial ownership information. Identifying the UBO constitutes a prerequisite to the establishment of any business relationship. Under the scenario in which the UBO can not be identified, transaction(s) should not be completed, and existing relationship terminated. Moreover, a declaration of suspicion (DOS) should be filed with the competent authority.

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