23 Mar 2020
Luxembourg’s parliament on Saturday voted in favour of new laws to implement EU rules increasing reporting duties on cross-border tax arrangements and stepping up the fight against money laundering.
After Tuesday’s session was cancelled because of the pandemic, parliament convened over the weekend to vote on a package of laws.
This included the European Commission’s so-called DAC-6 directive, which adds new reporting obligations for lawyers, accountants, auditors, banks and financial intermediaries on cross-border tax arrangements.
Luxembourg’s state council had initially opposed the law, saying it would force the financial services sector to violate professional secrecy obligations. But the law on the table on Saturday added exceptions for lawyers, auditors and accountants.
The Grand Duchy is late in transposing the EU directive into national law, missing a deadline at the end of 2019. The new reporting duties will come into effect from July.
Parliament also passed two laws to implement the EU’s fifth anti-money laundering directive. This includes a register of bank accounts and safe deposit boxes in the country. This register features the account and deposit box number as well as the account holder, whether a private person or the beneficial owners of a company.
The register aims at speeding up investigations by offering law-enforcement quicker access to account information.
Luxembourg’s financial services regulator, the Commission de Surveillance du Secteur Financier (CSSF), and the judiciary’s financial information office, the Cellule de renseignement financier (CRF) will have access to the list but police, the intelligence service and other organisations fighting crime and money-laundering can request information through the CSSF.
By Cordula Schnner and Kate Oglesby, Luxemburg Times, 22 March 2020
Read more at Luxembourg Times
RiskScreen: Eliminating Financial Crime with Smart Technology
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet