Banks, and other financial institutions (FIs) have long been subject to AML rules. The scope of these regulations has gradually expanded to encompass other professions such as family offices, accountants, real estate agents and developers, notaries and lawyers, which have intensified their effort to combat financial crimes.

The EU has recently reached an agreement on an AML package consisting of a new AML Regulation (AMLR), a new AML Directive (AMLD) and a new AML Authority (AMLA).

The AMLR will replace most of the existing AMLDs and will apply directly to all EU member states, without the need for national transposition. Thus, the 2004 Luxembourg Law transposing the current AMLD will largely be superseded by the AMLR.

The AMLR will provide a "single rulebook" for AMLA to oversee the implementation of the regulations in its capacity as a direct supervisor of certain FIs. Family offices, accountants, real estate agents and developers, notaries and lawyers are excluded from its supervisory remit. However, AMLA will have the ability to issue non-binding guidelines for those professions that may not necessarily align with the ones issued by Luxembourg AML Supervisors (i.a., the Administration de l’enregistrement, des domaines et de la TVA) and may result in alterations to the existing AML policies and procedures.

While such harmonisation would help reducing uncertainty, it is not yet clear if the EU package will bring in more technical compliance requirements for small businesses and professionals. Thus, they should monitor the developments and prepare for the changes ahead.

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DENTONS LUXEMBOURG

Lars Weineck

Tel. +352 46 83 83