ILA efforts to clarify the scope of the AML law

Update by Carine Feipel

Dear All,

A few weeks ago, I gave you an update on our efforts to clarify the scope of the AML law, notably to come forward with an answer to the question as to whether directors (in French: “administrateurs”) are Trust and Company Service Providers (“TCSP”, in French: “prestataires de services aux sociétés et fiducies”). If so, they would need to register with the Administration de l’Enregistrement, des Domaines et de la TVA (“AED”) and, as such, have to comply with the provisions of the AML law unless they would be authorised or approved by another Luxembourg authority for such TCSP services. I had explained to you that ILA representatives met with the AED in early February and had a positive and constructive exchange.

Following-up on this meeting with the AED, we recently had a meeting with representatives from both the Ministry of Finance and the Ministry of Justice. Both such Ministries are indeed very much involved on all AML topics. This joint meeting was an opportunity for us to discuss with senior civil servants from those Ministries their understanding and intentions in terms of the scope of the AML law with respect to Board members.

I believe I can say that our arguments have been heard by the representatives of the Ministries and that our position is largely understood. We are rather confident, following these discussions, that there seems to be no current intention to submit all directors to the AML law. To the contrary, it is now our understanding that the Ministries were receptive to our arguments that most situations where a person is appointed to serve on the Board of a legal entity should be deemed outside the scope of the AML law.

Nevertheless, there are some situations where indeed a TCSP is involved and where the AML law must consequently be applied. We are currently working with the Ministries to clarify how these situations can be defined and appropriately scoped. 

We should be able to report to you further and hopefully finally on this matter in the coming weeks.

Let me take this opportunity to warmly thank Marc Feider, Fernand Grulms and Joachim Kuske for their continued and relentless engagement on this difficult but so important topic for many of us.

I will, of course, continue to update you on this matter. 

With my best regards

Carine Feipel

Chair of ILA