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CSSF Imposed a €226,000 Fine on Maitland Over AML Compliance Failure

  • Richard Marley
  • September 16, 2022
  • 2 minutes read
  • 70
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Maitland Luxembourg SA received a penalty of €226,000 over anti-money laundering and customer due diligence compliance failure. According to CFFS’ evaluation, Maitland adopted remedial actions following the audit. 

Financial Sector Supervisory Commission (CSSF) imposed a fine of €226,000 on Maitland Luxembourg SA over AML compliance failure. Anti-money laundering law breachings were the main reason behind imposed penalty on Maitland. According to the financial regulator, it’s a necessity to impose a penalty for breaking significant anti-money laundering laws. CSSF considered this fine as an administrative penance for “professional obligations of the fight against money laundering and counter financing of terrorism.”

CSSF identified the shortcomings “during an off-site inspection” of the anti-money laundering protocols of Maitland. At the same time, it plays the service provider’s role, facilitating companies and trusts with its services. CSSF found the lapses linked to “clients’ risk assessment, the obligation of ongoing customer due diligence measures, the obligation of cooperation with the authorities.”

Evaluation by the financial regulator on the matter was keenly done to identify the lapses in their system. 

According to the report, Maitland followed the precautionary steps in order to remediate the issue, following the audit and it “has sold part of its business to another trust and company service provider.”

“We have no comment to provide at the moment”, Maitland replied when contacted for comments. 

Being a specialised PFS, the authorisation of Maitland would have permitted to continue the activities of company domiciliary, management services, customer communication & administrative agent, and family office. 

The fund services pending acquisition were announced on 18 May by the Apex Group, which operates with a huge presence in Luxembourg. Moreover, the recovery of Maitland International Holdings’ third-party management business (a group specialised in the fund services’ provision) was also announced. Later this year, it’s expected to complete the acquisition of the Maitland business. 

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