Luxembourg’s financial regulator CSSF has found shortcomings in the application of measures to fight money laundering and terrorism finance at fund services provider Maitland Luxembourg SA and issued a fine of 266,000 euro.
The shortcomings were identified during an inspection reviewing Maitland’s compliance with AML/CFT requirements, designed to stop money laundering and to counter terrorism finance. The fine was imposed on 26 July, CSSF said in a statement issued on Wednesday.
“The deficiencies identified relate specifically to shortcomings regarding the clients’ risk assessment, the obligation of ongoing customer due diligence measures (and) the obligation of cooperation with the authorities,” said CSSF, adding that Maitland since then “has undertaken corrective measures and has sold part of its business to another trust and company service provider”.
Third time in seven years
It is the third time in seven years that CSSF found compliance shortcomings at Maitland. In 2018 Maitland was fined for similar reasons as this week, while in 2017, CSSF listed Maitland as one of ten Luxembourg firms and banks on which a fine was imposed following the publication of the Panama Papers scandal in 2016.
A spokesperson for Maitland said the firm does not wish to comment on the CSSF fine.
Apex Group, a global fund services provider with considerable presence in Luxembourg, in May announced its acquisition of Maitland. The transaction is subject to regulatory approval and has yet to close. Founded in 1976, Maitland provides a range of fund services including administration, transfer agency and management company services to 120 investment managers and 25 fund sponsor clients. Its client base includes traditional, alternative and mutual funds across all fund types, strategies and investment styles.