Regulatory Alerts2019-12-20
Added · Updated
Circular CSSF 19/732 as amended by Circular CSSF 24/861: Clarifications on Identification and Verification of Ultimate Beneficial Owners
The document provides guidance to professionals under AML/CFT supervision of the CSSF on identifying and verifying the identity of ultimate beneficial owners (UBOs). It defines a UBO as a natural person who ultimately owns or controls a customer, establishing a threshold of more than 25% ownership or voting rights as an indication of direct ownership. For legal persons and arrangements, the circular outlines a cascading procedure requiring identification of controlling natural persons, senior dirigeants, or specific trust roles such as settlors, trustees, and beneficiaries. Professionals must not rely exclusively on central registers for due diligence and are required to terminate relationships or file suspicious activity reports if a UBO cannot be identified.