Anti-Money Laundering Law of 18 September 2017 - Article 34

Art. 34

§ 1. Obliged entities shall take adequate measures to assess the customer’s characteristics and the purpose and nature of the business relationship or of the intended occasional transaction.

In particular, they shall ensure that they possess the information necessary for the implementation of the customer acceptance policy referred to in Article 8, for the application of the ongoing due diligence requirements with regard to the business relationships and transactions in accordance with Section 4, and for the specific enhanced due diligence requirements in accordance with Chapter 2.

In particular, they shall take reasonable measures to determine whether the persons identified pursuant to Section 2, including the beneficial owner of the beneficiary of a life insurance policy, are politically exposed persons, family members of politically exposed persons or persons who are known to be closely associated with politically exposed persons.

This information shall be obtained at the latest when the business relationship is established or the occasional transaction is carried out. The measures taken for this purpose shall be proportionate with the risk level identified in accordance with Article 19, § 2, first subparagraph.

§ 2. Obliged entities that issue electronic money may, based on an appropriate assessment of the ML/FT risks conducted pursuant to Article 16 that demonstrates that these risks are low, derogate from the first paragraph, with regard to customers in the course of their business related to the issuance of electronic money, if the risk mitigation conditions listed in Article 25 are met.

§ 3. If obliged entities are unable to fulfil their obligation referred to in paragraph 1, they may neither establish a business relationship with or carry out a transaction, especially a transaction through a bank account, for the customer concerned. Moreover, they shall terminate any already established business relationship or shall, where appropriate, apply the alternative restrictive measures referred to in Article 33, § 1, third subparagraph.

In the cases referred to in the first subparagraph, obliged entities shall examine, in accordance with Article 46, whether the causes of the inability to fulfil the obligations referred to in paragraph 1 could raise ML/FT suspicions and whether CTIF-CFI should be notified.

§ 4. Paragraph 3 shall not apply to the obliged entities referred to in Article 5, § 1, 23° to 28°, with the strict proviso that they ascertain the legal position of their customer or perform the task of defending or representing that customer in, or concerning, judicial proceedings, including providing advice on instituting or avoiding such proceedings.