Impacts of the New Requirements on Personal Data Protection on Luxembourg Anti-Money Laundering and Combatting the Terrorism Financing Environment
_Yann Payen, Corporate Director, and Fatiha Mehraz, Chief Compliance Officer, contributed, with Steve Viard from East-West United Bank, on the processing of data in Luxembourg anti-money laundering (AML) and combatting the terrorism financing (CFT) programmes. Discover their article in the "Bulletin Droit et Banque" #62 edited by ALJB (Association luxembourgeoise des juristes de droit bancaire).
Objective of the contribution is to determine how data protection and/or privacy concerns could impact and modify the Luxembourg AML-CFT practice and to provide suggestions about how professionals could accommodate these new legal constraints in their day-to-day activities.
ALJB publications are available to ALJB members or on request.
Here below a small excerpt of the article:
Although the processing of data is a key element in all "know-your-customer" (KYC) procedures and/or in "anti-money laundering" (AML) and "combatting-of-terrorism financing" (CFT) programmes, it should be borne in mind that these data are mostly of a personal nature and therefore benefit from specific statutory protection under European legislation. Consequently, personal data processed for AML-CFT purposes are intended to be subject to two differents set of laws, the objectives of which are, prima facie, contrasting if not conflicting. Indeed, the AML-CFT legislation is primarily aimed at preventing the financial system from being used for money laundering or terrorism financing, thus legitimising intrusive requests for personal information, whereas the main purpose of data protections laws and regulations is to shield individuals' privacy from abuses and/or misuses. [...]