At Luxembourg Compliance Solutions (LCS), we benefit from multiple years of combined experience within the investment funds (AIFM, Fund Administration) and financial services industry (wealth management, private banking) as a whole. We have been running fully regulated financial services firms in Luxembourg for 10 years while developing key partnerships abroad. Our mission is to enable our clients to focus on their core business activity (i.e. portfolio management, business development) instead of constantly being distracted by monitoring and fulfilling additional regulatory and legal requirements. Our commitment towards our clients is to ensure the highest-level of regulatory compliance for their investment products and services for the benefit of all stakeholders with a focus on their investors and clients. As a team, we are specialized in regulated, as well as unregulated alternative investments products and management thereof. On a constant basis, we master the applicable regulations which relentlessly evolve. We continuously invest in technology and systems as we believe this is the only way to achieve an economic and commercially powerful compliance solution.
We firmly believe that every business should be based on strong professional and ethical standards. At LCS we have a values-based compass that doesn't waver whatever the change in circumstances. We always put our clients’ business safety first by ensuring strict compliance with and anticipation of applicable legislations and regulatory norms, while achieving economic and commercial efficiency. We expect such integrity approach to be shared by our clients and different stakeholders.
Customer focus and communication
The guiding principle of our mission is to make sure that legal and regulatory compliance measures are put in place for the benefit of our clients’ operations and investors. We never forget that our clients’ intrinsic interests are the nexus of our objectives. We constantly communicate with our clients so that our business partners can be up to date with both compliance and regulatory matters, as well as with the tasks and services which are currently performed for them and their investors/clients.
We know that compliance and regulatory matters are usually not straight-forward, but we make them accessible to our clients, as much as possible, through technology-related solutions. We ensure that our clients understand and agree with our methodology and the tasks we perform for them.
Diversity and Network
Our team members and partners come from a variety of investment related backgrounds in terms of asset classes (listed and unlisted), organization types (AIFM, Wealth Management, Banking and Fund Administration, FinTech) and geographical regions (Luxembourg, CEE, Spain, UK, Germany, Switzerland). When facing challenging or unprecedented regulatory and compliance issues, we put in place internal task forces together with our external advisors to determine the best way to proceed taking into account all the important factors related to any specific cases.
LCS offers you a full range of compliance and regulatory support services from advisory missions, to full delegation of functions including access to our technology resources. We cover a broad range of subjects including Anti-Money Laundering (AML) and Counter Financing of Terrorism (CTF), Know your Customers (KYC) and Know your Transactions (KYT), AIFs and AIFMD including Distribution and Marketing, PRIIPS-KID, CSSF Circulars and Regulations, Due-diligence on counterparties and delegates, Regulatory set-up and filings.
Governance, regulatory and compliance
In the scope of our Governance, Regulatory and Compliance offering, LCS will support you with the following services:
- Compliance controls assessment and gap analysis;
- Fund/GP and Manco Set-up and Advisory Services in accordance with applicable regulations including but not limited to AIFM law, Company Law, SIF law, SICAR Law, RAIF Law, CSSF Circular 18/698;
- AIFMD Annex IV reporting, PRIIPS-KID and Distribution notifications (covering all EU as well as UK and Switzerland via our key partners);
- Regulatory Watch Services (Regulatory, AML-CTF, Fund Distribution)
- IT Regulatory Services (on-site and Cloud-based)
- Advice on designing of the compliance, AML-CTF, KYC and KYT functions including budgeting process, when appropriate,
- Assistance with designing and implementing specific reporting systems, process requirements, and compliance programs
Compliance support, delegation & staffing
The lack of staffing capacity and compliance related hands-on experience may expose organisations to the risk of being compliance incompatible. In order to address such needs, our team offers:
- Direct support or outsourcing of your compliance function
- On-site/Remote assessment & assistance (AML-CTF functions, corporate governance)
- Assistance on the organization and governance of the Management bodies
- Preparation and/or review of client acceptance process and documentation
- On-going regulatory awareness and assistance, training sessions,
- Know Your Relationship obligations (i.e. “Know Your Customer”, “Know Your Intermediary”, “Know Your Distributor”, “Know Your Counterparty”, “Know Your Transaction”)
- Due diligence on counterparties (i.e. delegates, advisers, distributors, banks and others)
Anti-money laundering and counter terrorist financing
The need for effective AML/CTF compliance solutions, technology infrastructure and controls is greatly sought-after, as are the severe responsibility and financial penalties for firms failing to comply. Whether assisting a financial services company in proactively seeking to improve its processes or reactively responding to regulatory changes while ensuring commercial and financial efficiency, LCS can:
- assess your current AML/CTF and regulatory framework including reviewing and/or designing your policies and procedures in compliance with the 5th EU AML/CFT directive and its implementation in the Luxembourgish law;
- assist professionals in their AML/CTF and tax transparency obligations (like FATCA/CRS reporting, DAC6 reporting), the AML/CFT risk assessment of their activities and enable them to properly mitigate the risks identified
- outsourcing of the AML/CFT compliance function and providing responsible of AML/CFT controls function in accordance with article 4 of the AML/CFT 2004 Law.
- assist professionals in the design and implementation of a risk-based approach and risk-scoring
- assist professionals in demonstrating to third parties (including authorities and regulators) the adequacy of their AML/CTF policies, regulatory procedures and controls by providing DDQ and factual reporting
- assist and support the Compliance Officer and other professionals in addressing any specific AML/CTF matters or needs
Our solutions are pragmatic, tailor-made and aim to help you achieve your compliance objectives, helping to ensure the sustainability of your business.
Our IT capabilities
Luxembourg Compliance Solutions established a key partnership with Cascade – a powerful Administrative, Compliance and Governance software.
Cascade organizes the Compliance function within operational framework created for the management and members of the team. It enable organisations to perform their AML/CFT tasks, such as identification of clients and beneficial owners, initial and on-going automatized name screening and monitoring of PEP and sanctions lists, as well as adverse media. It guides users on types of documents they need to collect and allows generation of AML/KYC questionnaires.
Furthermore, it accompanies the Compliance function in ensuring the respect of the applicable regulatory framework in particular by providing an audit trail for the log and treatment of alerts issued from name screening, assisting with on-going monitoring of clients and counterparties accounts, facilitating materialization of on-site controls at different service providers, follow up on auditor recommendations, providing an integrated log of complaints, recording any relevant documents regarding cooperation with the FIU, flagging potential conflicts of interests and providing a log for refused relationships (among others).