Will the Financial Action Task Force (FATF) visit really be postponed until October 2021?

in Industry Insights, 16.04.2020

On April 14th, the Ministry of Justice announced that the plenary discussion of the FATF report assessing Luxembourg’s performance on combating money laundering has been postponed until October 2021.

The initial plan saw a plenary discussion scheduled for June 2021, following an onsite visit from experts in October 2020.

In the current context of the Covid-19 crisis we assume the on-site visits will probably not happen in October 2020 as originally planned. As a result of this delay being granted and taking into account that it takes nine months to produce and discuss the outcome, the FATF on site visits will probably not occur until the first quarter of 2021.

We all remember the relief of the financial industry when the EU commission granted an additional year for MIFID 2 implementation and that this additional year was of upmost importance to meet the high level of quality standards expected by the Regulator.

We are aware that this is a difficult period of time for all of us, but this should not affect the initial planning in place to enhance procedures to combat money laundering. We encourage you to stick to the intended timeline by enhancing your control framework, adapting your procedures to the specific situation at hand, or performing your recurrent control activities.

On March 25th, the Luxembourg Parliament passed important bills implementing the 5th AML Directive. Please read our alert by following this link.

This article has been written by Sandrine Periot.