Delano breakfast: Getting ready for FATF audit

The Financial Action Task Force, an international anti-money laundering watchdog, will be in Luxembourg next year checking how well the country’s regulator and financial companies are following global rules.

Birgit Goldak, anti-money laundering services partner at PWC in Luxembourg, spoke about the FATF audit during the Delano Breakfast Talk on Thursday.

FATF inspectors (who work at financial regulators in the other 36 FATF member jurisdictions) will conduct onsite reviews of Luxembourg's financial regulator, the CSSF, as well as a “representative sampling of companies” of varying sizes in the auditing, banking, funds, insurance and payment services sectors, stated Goldak.

The audits are compulsory under the international FATF agreement and an EU directive that have been incorporated into Luxembourg law. In addition to preparing for its own review, Goldak said the CSSF has been encouraging regulated firms to get ready for a possible international inspection.

During the breakfast talk, Goldak outlined what the inspectors will likely be looking for, some particular challenges that face cross-border investment funds in Luxembourg (her particular area of expertise), and recent changes to the anti-money laundering rules.

FATF onsite visits are planned for June and July 2020.

The event was organised by the Paperjam Club and sponsored by Victor Buck Services.