FCC Flash

The OneLife Company S.A., headquartered in Luxembourg, has been fined $0.63 million by the Luxembourg insurance sector regulator, Commissariat aux Assurances (CAA). This penalty was imposed due to inadequate anti-money laundering and counter-financing of terrorism (AML-CFT) controls and systems.

During a CAA audit conducted between December 2021 and April 2022, certain shortcomings were identified in OneLife Company’s AML/CFT processes. As a result, CAA levied an administrative fine on the company on May 16th, 2023, and this action was made public on July 21st, 2023. The audit primarily focused on the risk of tax non-compliance among the company’s clientele.

CAA emphasized significant inadequacies, particularly regarding life insurance policies initiated before 2017 that remained active even as new primary tax offenses were incorporated into money laundering regulations on December 23, 2016, aligning with Luxembourg’s 2017 tax reform.

Specifically, CAA identified issues including insufficient risk assessment, inadequate enhanced due diligence, lapses in document review and updates, as well as delays in submitting suspicious activity reports to the Financial Intelligence Unit.