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AML/CFT – Anti-Money Laundering and Countering the Financing of Terrorism

Money laundering and terrorist financing are problems that require constant vigilance. Every day, Arendt works to ensure that its clients do not become unknowing contributors to illicit activity. Learn more about our AML / CFT services in Luxembourg and international matters, developed for your needs.

Money laundering and terrorism financing are threats that require constant vigilance. The pressure and regulatory scrutiny at the national and international levels is intensifying with the imposition upon companies of ever more complex global AML/CFT rules, including due to international financial sanctions. Accordingly, there has been a significant rise in supervisory activities and regulatory expectations, creating a zero-tolerance environment in which any shortcoming could result in serious reputational damage and heavy fines for companies or individuals.

Every day, Arendt works to ensure that its clients remain compliant with their AML/CFT requirements in this constantly changing environment, so as not to become unknowing contributors to illicit activity.

Arendt is uniquely positioned to understand and help you face the many challenges entailed by your AML/CFT obligations. We would be pleased to assist you in the prevention and detection of ML/TF concerns and risks while also equipping your company to properly respond to any deficiencies, and to implement a suitable AML/CFT compliance programme where necessary.

Who we assist

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We assist clients in all sectors, from investment funds and asset managers to banks, financial institutions, professional of the financial sector and insurance companies, and even non-financial actors with AML/CFT concerns. Arendt helps you operate effectively and within the bounds of your legal and regulatory obligations, advising on how to meet them for any sector and how to implement standards that ensure business integrity, compliance, transparency and security.

Regulatory matters

Sandrine Périot

Partner ARC

Stéphanie Lhomme

Partner ARC

Abhishek Dawar

Director

Operational matters

Michel Iannone

Director

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Prevention

Stay ahead of your AML/CFT obligations

Framework and governance review

  • Design and review of policies and procedures, including gap assessment for full compliance with AML/CFT rules taking into account the specifics of your industry
  • Review and assessment of your control and governance framework and assistance with any further enhancement, update or measures

Risk assessment and risk-based approach

  • Design and review of your risk assessment methodology, including the asset risk assessment approach
  • Design and review of your country risk assessment methodology, including the performance of country risk assessments
  • Assistance in the completion of your annual risk assessment (inherent and residual risks) and subsequent reporting
  • Review, drafting and implementation of a risk-based approach specific to your organisation
  • Design and review of your AML risk appetite and KPIs/KRIs

Training and awareness programme

Online and on-site training performed by subject matter experts, tailored to your needs and specifics

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Ongoing life cycle

Stay efficient when complying with your AML/CFT obligations

Health check, mock inspection and regulatory on-site inspection (OSI) preparation

  • General suitability review of your AML/CFT internal control framework (key policies and procedures, processes and governance documents) to ensure consideration of regulatory requirements
  • Preparing your company for regulator visits: interview preparation, review of presentations for introductory meetings with the CEO and CCO, review of key AML/CFT policies and documents, sample testing, etc.
  • Assistance during regulatory on-site inspections

AML compliance assistance

  • Provision of AML/CFT, tax and legal experts to address all AML compliance needs: completion of annual AML/CFT questionnaires and market entry forms, review and preparation of RC reports, drafting of policies and procedures, performance of KYC/CDD and ODD (clients, investors, distributors, delegates, assets), assistance treating transaction/screening alert backlog, assistance with goAML registration and STR/SAR preparation, etc.
  • Hotline to AML/CFT, tax and legal experts who answer your AML/CFT queries on demand
  • AML/CFT-oriented legal assistance in drafting and reviewing prospectuses and issuing documents, subscription and application documents and service provider agreements, as part of investment fund development or banking and insurance licensing

RBE/RFT services

Support in the identification of Ultimate Beneficial Owners of Luxembourg entities or fiducies and trusts and related analysis, and in filing UBO-related information with the RBE or RFT to meet registration obligations under the RBE and RFT laws

Screening and transaction monitoring assessment

  • Review and assessment of potential suspicious transactions and reporting to the FIU, including legal assistance regarding SAR/STR fillings and sanctions
  • Assessment of your current name screening/transaction monitoring tool setup (review of parameters, scenarios, thresholds, data quality, etc.) and assistance implementing any corrective measures needed to improve efficacy
  • Assessment of the effectiveness of the transaction monitoring process (treatment of hits, documentation, detection of AML/CFT typologies, overall monitoring during the relationship) and assistance implementing any corrective measures
  • Design and review of screening and transaction monitoring procedures, including gap assessment to ensure compliance with current AML/CFT rules, taking into account the specifics of your industry 

MLRO/AML officer/RC mandates

  • Provision of RC mandates
  • Provision of advice and support to your MLRO/AML Officer/RC
  • Drafting and review of documents and agreements relating to the appointment of the RR/RC

Counterparty due diligence (customer, distributor/intermediary, delegates, asset)

  • Assistance conducting initial and ongoing due diligence on counterparties
  • Review of your existing approach, framework and contractual agreements
  • As part of M&A during business pre-deal (buyer or seller), review of target’s AML/CFT framework and issuance of a specific due diligence report

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Response

Stay responsive to resolve shortcomings in your AML/CFT compliance programme

AML/CFT response following on-site inspection by regulators

Legal assistance to properly address and respond to sanction letters, fact validating meetings, etc.

AML/CFT mitigation programme

  • Assistance defining and implementing a mitigation action plan to address shortcomings identified following an on-site visit, including discussion with the regulators
  • Following framework review, assistance implementing corrective measures to address deficiencies identified in your control environment
  • Assistance in the remediation of shortcomings identified following a health check or a mock inspection

AML/CFT remediation exercise

Assistance designing and implementing a remediation exercise/plan (including KYC/KYT and tax aspects) combining subject matter expertise and technological capabilities, as part of backlogs, due to trigger event circumstances, following migration of client portfolio, etc.

AML/CFT investigation

Assistance investigating any ML/TF incidents, allegations or suspicions to enable you to quantify, take appropriate action and prepare your case if required

Definitions

AML: anti-money laundering

CDD: customer due diligence

CFT: combating the financing of terrorism

FIU: Luxembourg Financial Intelligence Unit

GP: general partner

IFM: investment fund manager

KRI: key risk indicator

KYC: know your customer

MLRO: money laundering reporting officer; RC: responsable de contrôle

OSI: on-site inspection

RBO: Register of Beneficial Owners; RBE: registre des bénéficiaires effectifs

SAR: suspicious activity report

STR: suspicious transaction report

TFS: targeted financial sanctions

UBO: ultimate beneficial owner

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