Annual Report - paperJam

Concerning the cooperation with the authorities,
professionals are required to inform the FIU
“without delay”. The declaration “must be accompanied
by all the information and documents on
which the declaration was based”. Moreover, the
“obligation to declare suspect transactions applies
without the declaring parties being required
to qualify the underlying offence”. Concerning the
fight against terrorism, the compulsory declaration
likewise applies to “funds for which there
are reasonable grounds to suspect, or which are
suspected, of being linked to or connected with
or likely to be used for terrorism, terrorist acts,
associations, organisations or terrorist groups or
to those which finance terrorism”. This formulation
covers the criteria of suspicion both subjective -
the person who suspects - and objective when
there are reasonable grounds for suspicion, i.e.
the suspicion can be verified if the circumstances
surrounding the transaction normally lead to a
person in whose case it is reasonable to suspect
that the transaction is linked to a criminal activity.
The new law introduces specific provisions governing
instructions for placing a stop on accounts.
Previously the instruction for placing a stop applied
for a maximum period of three months, but it
can now be renewed for one month in each case
subject to a maximum of six months. Written confirmation
from the FIU is sent to the professional
and “in the absence of written confirmation the
effects of the examination cease on the third
working day at midnight”. As is the case at
present, the professional is not authorised to
disclose this examination to the client without the
express prior consent of the FIU. The latter can
use its blocking power even in the absence of any
declaration of a suspect transaction. Professional
secrecy does not apply to the FIU. The declarations,
information and documents supplied by
a professional cannot be used against him in
proceedings for breach of professional obligations.
The purpose of this provision is to assure protection
for the professional who effects a declaration
of a suspect operation against the risk of incriminating
himself.
The law substantially increases the maximum
rate of the fine applicable to persons who have
knowingly contravened their professional obligations:
it is increased from 125,000 euros to
1,250,000 euros.
The powers of the CSSF to impose penalties
have likewise been strengthened: it may impose
fines ranging from 250 to 250,000 euros (previously
125 to 12,500 euros). Over and above such
fines, it may impose a warning, a reprimand or
even a prohibition, either for a limited period or
permanently, from effecting or pursuing one or
more transactions or activities, or a prohibition
either temporary or permanent from serving as a
board member, manager or de facto or de jure director
of the bodies and entities which are subject
to its supervision. The CSSF may likewise impose
obligations requiring the persons concerned to
comply with the injunctions of the CSSF.
27 April 2010
After 5 meetings of the Tripartite coordination committee, the
government and the social partners fail to find an agreement.
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