KITRY UK
Press Releases - Customer News
Press Releases
2008
New laws against money laundering and against the financing of terrorism.
A software solution dedicated to professionals in Luxembourg
Over the last years professionals of the finance sector but also other actors of the Luxembourg place have assisted to a reinforcement of their professional obligations in the fight against money laundering and against the financing of terrorism. The law of 12 November 2004 as modified by the laws of July 17th, 2008 translates these evolutions into facts.
The concept of "Know Your Customer" represents more consistent workload in pace with rapidly growing information and documents to be dealt with. In order to meet their obligations of identification and monitoring customers and invested money, the professionals concerned have to keep very complex databases up to date. This development will have a significant impact on human as well as technical resources in order to comply with this regulation.
The legislator requires from professionals the obligation of internal organization in terms of proper due diligence of their clients, reporting, record keeping, internal control, evaluation and risk management, management compliance and communication. Some professionals are even now explicitly required to have systems allowing them to respond quickly and fully to any request for information from the Luxembourg authorities.
Within the framework of the obligations of vigilance with respect to the customer and depending on their assessment of risk, professionals are obliged to carry out a classification of their clients. To this end, the law provides three levels of due diligence that can be simplified, regular or enhanced. The measure of vigilance of customers concerns also beneficial owners, the purpose and nature of the business relationship as well as transactions throughout the relationship.
The customer identification and identity verification must be based on information from reliable independent sources. At the international level, there are probably few sources easily accessible which meet the requirement of reliability and independence. To our knowledge, World-Check ™ is now a recognized reference on the subject.
The strengthened risk management associated with customers and their transactions before and during the entire duration of a business relationship is a direct consequence of this new law. From a certain volume of customers onwards, it becomes essential to have an efficient system to optimize the management and monitoring of the database. This system must not only allow classical management information collected on customers but must now classify clients in order that professionals can comply with their own obligations and remain attentive. If these features are also coupled to an independent source of information such as World-Check ™, the professional can with no doubt take advantage of an investment which significantly contributes to their obligation of adequate internal organization.
In partnership with a professional of the financial sector in Luxembourg, KITRY Consulting has developed KYC Manager, a software solution to assist the professionals in the management, organization, classification and security of their customer database and beneficial owners. KYC Manager is also designed to assist the professional in their risk management in accordance to the new obligations of vigilance.
KYC Manager is probably the only product specifically dedicated to professionals in Luxembourg. This unique tool ensures a powerful, effective, reliable and secure treatment of data relating to clients and beneficial owners. Due to the technological platform, KYC Manager provides the ability to perform automated control of data sources (lists of names of the prosecution, the European Commission, the parent company, World-Check ™, ...) and to manage the results. KYC Manager is also required to adapt to developments in the Luxembourg finance sector to facilitate the legal and regulatory alignment of its users.
