Anti-Money Laundering Law of 18 September 2017 - Article 19

Art. 19

§ 1. Obliged entities shall take customer due diligence measures that involve:

1° identifying and verifying the identity of the persons referred to in Section 2, in accordance with the provisions of the said Section;

2° assessing the customer’s characteristics and the purpose and intended nature of the business relationship or occasional transaction as well as, where appropriate, obtaining additional information for this purpose in accordance with the provisions laid down in Section 3; and

3° performing ongoing due diligence towards the business relationships and transactions in accordance with the provisions laid down in Section 4.

§ 2. The due diligence measures referred to in paragraph 1 shall be based on an individual ML/FT risk assessment, taking into account the characteristics of the customer and of the business relationship or transaction concerned. Moreover, this individual risk assessment shall take into account the overall risk assessment referred to in Article 16, first subparagraph, as well as the variables and factors referred to in the second subparagraph of the same Article, which are in particular taken into consideration in the latter assessment.

If obliged entities, in the context of their individual risk assessment referred to in the first subparagraph, identify cases of high risk, they shall take enhanced due diligence measures. They may apply simplified due diligence measures if they identify cases of low risk.

In all cases, obliged entities shall ensure that they can demonstrate to the supervisory authorities competent pursuant to Article 85 that the due diligence measures applied by them are appropriate in view of the ML/FT risks they have identified.