Luxembourg Publishes a Bill to Implement EU Directive On Tax Authorities’ Access To Anti-Money-Laundering Information

Luxembourg published a bill to implement Council Directive (EU) 2016/2258 amending Directive 2011/16/EU regarding access to anti-money-laundering (AML) information by tax authorities. The Bill was approved by parliament previously on July 27, 2018 and will be applicable as from August 10, 2018.

The Bill

Three domestic laws are amended to give tax authority access to information on the fight against money laundering. The laws amended are:

  • the law on administrative cooperation in tax matters,
  • the law on the Common Reporting Standard (CRS) and
  • the law on the country-by-country reporting

Council Directive (EU) 2016/2258

To ensure effective monitoring of the application by Financial Institutions of the due diligence procedures set out in Directive 2011/16/EU, the tax authorities need access to AML information. In the absence of such access, those authorities would not be able to monitor, confirm and audit that the Financial Institutions are applying Directive 2011/16/EU properly by correctly identifying and reporting on the beneficial owners of intermediary structures.

It is therefore necessary to ensure that tax authorities are able to access the AML information, procedures, documents and mechanisms for the performance of their duties in monitoring the proper application of Directive 2011/16/EU and for the functioning of all forms of administrative cooperation provided for in that Directive. Council Directive (EU) 2016/2258 is therefore introduced to amend Directive 2011/16/EU accordingly.

Sources: Luxemburg Government

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