Compliance and Risk | Independent Consulting Firm.

COMPLIANCE & RISK

DAMALION has designed specific offers combining compliance services and or specific Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) expertise.

Depending on your need and objectives, ad hoc compliance missions shall be shaped accordingly.

Overview
Damalion independent experts assist and guide you to set up or to maintain your :
– regulatory compliance framework
– AML-CFT/KYC deployment.

Compliance Standard framework
– drafting and reviewing compliance procedures and policies
– liaising with third parties such as auditors, banks, management companies, the CSSF…
– monitoring legal developments to ensure that the company (for a ManCo for instance) is compliant
with the applicable rules and regulation
– providing compliance support
– participating in compliance related projects and regulatory initiatives
– continuous involvement in monitoring of regulatory developments
– conductiong due-diligence reviews on customers/investors, service providers, distributors, stakeholders…
– advising on underlying client documentation required to have the investor/customer file compliant
– review AML-escalations
– compliance/AML analysis in the acceptance process of new client relationships or investment vehicles

Executed missions matching specific needs:

  • Compliance department setup
  • M&A/spinoff compliance review
    (merger of 2 insurance firms)
  • Internal audit of a family office and its subsidiaries
  • Transfer agent
  • (Compliance/risk management
  • Corporate reorganization/restructuring:Frontline, onboarding, budgeting, financing, reinvoicing
  • Acquisition project compliance (investment banking)
  • Consolidation overview
AML/KYC Standard framework
– Assess and understand client corporate structures (mainly Alternative Investment Funds) and apply relevant AML procedures in undertaking and obtaining sufficient KYC to meet CDD/EDD standards.
– Ensure clients’ risk profile accurately and consistently matches with company’s AML risk matrix.
– Determine the level of risk to be applied to clients using the company’s risk matrix and investigating the complexity of the ownership structure.
– Perform periodic reviews of existing customer base to ensure on-going compliance with the CSSF Regulations and Internal Policies and Procedures.
– Liaise with the clients and Front Office to obtain outstanding Customer Due Diligence (CDD) information/documentation to complete onboarding, renewal and remediation process.
– Conduct CDD and Sanctions checks on existing clients in accordance with CSSF Regulations or other relevant Regulations as required, escalating any findings to Compliance.
– Daily review of ongoing screening New Matches, conduct further researches to confirm or discard positive matches and escalate high risk cases to Compliance.
– Carry out ownership structure analysis and review other relevant documents to determine Intermediate Beneficial Owners (IBOs), UBOs, Authorized Persons and Key Principals (KPs).
– Screen customers for PEP, Sanction and Adverse Media
– Internal interfaces with Front Office, Legal and other key departments within the organization
– External interfaces and interactions with external counterparties/ clients.
– Performing CDD on clients by identifying and verifying information provided by the client using approved independent sources.

Tailor-made compliance expertise

Damalion independent experts aim at offering you a tailor-made approach to assess not only regulatory changes impacting your industry but also to provide you with operational inputs to empower your teams in their daily compliance routine.

You manage Alternative investment funds (AIFM) and Funds of funds (FOF)

Sectors : Private equity, Real estate, Securitization …

Our Damalion independent experts will help you with :

– review of your AIFM’s compliance policy

– Assess your compliance monitoring plan

– Perform and coordinate :

– (enhanced) due diligence

– Know Your Customer (KYC), Know Your Transaction (KYT)

– Anti-Money Laundering (AML)  and Counter Terrorist Financing (CTF) monitoring.

– Supervision, review or integration into your onboarding process of new customers

– Structuring awareness of your AIFM team to on compliance rules and regulations.

As a management company, you manage Alternative investment funds (AIFM), foreign funds,… 

Sectors : various.

Our Damalion independent experts will help you :

– Establish, or monitor policies, procedures and processes to be proportionate and adequate

– Review Compliance policy and internal charter : detecting potential failure risk on a regulatory level,

– Identify potential residual or connexed risks to propose an adequate plan to mitigate such risk

– Assess effectiveness of your existing measures, policies and procedures

– Review the remediation plan to get ManCo’s compliance with its obligations

– Supervise the responsible team to feed ManCo’s legal and regulatory obligations

– Accompany senior management for required or anticipated changes in standards to frame their impact on compliance perimeter

– Empower staff about the value creation of compliance by helping them continuously improve their daily routine.

– Establish Statement report to relevant lines of defence and status of remediation plan execution and effectiveness

– Assist Team to issue quaterly or annual compliance reports communicated to the Board

Anti-money laundering and Combating Financial of Terrorism (AML-CFT) compliance :

– Set up or review of your AML-CFT framework

– Assisting your Money laundering reporting responsible or alike with 2 options:

  1. Perimeter is global and includes : your management companies and your funds per se
  2. Perimeter is restricted to your management company and or your investment funds.

– Establishing report to the respective Board(s)

– Helping with the CSSF AML questionnaire

– Assessing integrated regulatory watch with the team in charge.

As a registrar and transfer agent, you are responsible for success of investors’ information process and updates, and their financial instrument operations.

Our Damalion independent experts will help you with :

– Compliance monitoring review, testing and establishing reports

– Identifying, measuring potential threats to your activity and setting a preventive plan to be executed if necessary

– Guiding on development and enhancement of existing control framework and its effectiveness to mitigate risks

– Delivering reporting to match your meeting agenda

– Assisting for implementation of action plans emerging from the compliance monitoring reports

– Providing one-time or regular reporting (monthly, quarterly, annually) about compliance program efficiency

– Supervising on demand annual compliance risk assesment agenda and Compliance monitoring planning.

– Performing due diligence reporting depending on action perimeter :

  1. clients
  2. clients and or third party vendors.

– Stressing your compliance procedures and their updates or need to changes.

– Reviewing your compliance processes and practices

– Interacting with your team in charge and check if an appropriate training plan is relevant

– Contributing to improving a compliance framework which is adaptive to regulatory changes.

Anti-Money Laundering (AML)  and Counter Terrorist Financing (CTF) monitoring plan

You may request an independent expert support for the following AML-CFT obligations:

– Reviewing AML / KYC (Know Your Customer) processes and operations (customer details and required documentation assessment)

– Tracking the update reports

– Reviewing level of risks in specific queries and answers between staff and customers to ensure compliant customer relations

– Raising awareness among team instilling a culture of continuous procedures check related to latest regulations and CSSF circulars

– Reviewing transaction monitoring screening and AML related documents uploads

– Interacting with compliance staff in charge about their current compliance assessment framework.

– Supervising processing of KYC documentation and assessing complexed cases with team.

 

Damalion independent experts offer you an AML-CFT compliance expertise to help you optimize your risk assessment framework with the latest regulatory changes.

A tailor-made support contains for instance:

– Reviewing or setting up money laundering controls and procedures complying with regulatory and governance requirements

– Sharing AML/KYC best practices and guidance to senior management, team in their customer relationship

– Checking correct AML-CFT deployment at the professional obligations level

– Validating or setting up  AML-CFT policies, processes and procedures satisfying local regulations and Governance requirements

– Assessing risk applicable to exceptions compared with AML-CFT regulations and internal policies

– Reviewing compliance framework for approval of Political Exposed Persons and high-risk perceived profiles

– Addressing the ongoing developments in AML-CFT regulatory and best compliance practices

– Evaluating level of internal money-laundering combat and related suspicion assessment

– Supporting for issuance, review of required or ad hoc reporting to the board or Risk committee

Damalion independent experts will support you in the AML-CFT compliance of your operational workflow.

As you deal with external parties such as intermediaries, institutions, other distributors, we help you frame operational risk to the required compliance risk level.

Our independent support includes :

– review of Know Your Customer (KYC) documentation, AML-CFT internal policies, procedures and processes to be adequated with regulatory standards

– Screening of customer or investor onboarding, including due diligence check about existing and new distributor

– Checking effectiveness of your KYC due diligence plan (stantard, light or enhanced) and its communication flow throughout departments

– Review of frequency level of customer due diligence system compared with risk exposure level and required compliance

– Review of your escalation risk alert plan (documentation about PEP, treatment of adverse media data)

– Analysis of regulatory developments and best practices to design a AML-CFT, compliance update and or change plan

– Raising awareness among team to help them define or address operational latent induced risks

– Addressing effective level of responsibilities and ownership of AML, compliance issues and guide team if necessary.

Damalion independent experts work with you to strenghten your governance while contributing

to the appropriate operational risk monitoring and management.

Our experts bring you the following range of services:

– Set up or maintainance, monitoring, control of your operational risk framework

–  Design or monitoring and control of your compliance policies, procedures and processes

– Review of your fund origination and distribution rules, fund management, procedures of affiliates transactions

– Review your compliance assessment for transactions, funds, related products and services

– Identification of relevant improvement of your escalation plan of compliance issues

– Control your marketing material approval procedures

– Stressing your risk reports about investment funds on a regulatory compliance level

– Review your AML-CFT, KYC policies, procedures and processes to command changes, updates and reporting

– Stressing effectiveness of your customer due diligence execution on regulatory compliance and AML-CFT/KYC frameworks

– Review of your MIFID implementation plan and its effectiveness

– Control of compliance assessment about business and third-party relationships

– Interaction with teams including portfolio managers to review your risk management framework on a regulatory compliance level

– Supporting issuance of regulatory compliance reports under regulatory and internal governance framework

– Engaging in an anticipation plan -if necessary- to facilitate implementation of new or upcoming regulations or adjustment of existing policies, procedures and processes

Damalion experts assist you in your private equity obligations to regulatory compliance and AML-CFT/KYC frameworks.

Our tailor-made mission dedicated to your needs include:

– Set up or monitoring and control of your compliance, AML-CFT/KYC policies, processes and procedures

– Review of customer due diligence process deployment for all investments (ongoing or in closing phase if requested)

– Identification, analysis and reporting potential breaches of regulations regarding compliance rules in force, AML-CFT/KYC and financial crime rules

– Design or review of your risk mapping for new projects, new funds or new services to be launched

– Raising awareness among team to maintain a culture of compliance risks and potential negative impact for stakeholders’ value creation

Damalion experts are dedicated to support you in your obligations to comply with laws and regulations, professional standards, best industry codes of conduct and practices.

In so doing, our guidance includes regulatory, governance and financial crime compliance :

– Monitoring and controlling compliance framework

– Review AML-CFT framework for high risk categorized business lines, capital transactions and third-party vendors

– Review alert system and escalation policies, procedures and processes in case of qualified deficiencies or high potential risk

– Enhancement of AML-CFT compliance framework for local or European entities on a Luxembourg related level and checking -on demand- integration of Luxembourg risk assessment framework in such entities

– Set up or review of Financial crime prevention plan and stress testing of such a plan

– Review the onboarding of customers – including PEP, potential high-risk profiles, new business opportunities, complex transactions

– Review the effective empowerment of the central point of contact in charge of financial crime perimeter

– Supervise and review with compliance team, system efficiency for Suspicious Activity Report (SAR)/Suspicious Transaction Report (STR)

– Review or contribute to issuance of regulatory, management, governance reporting

– Contribute to design or improve metrics to measure performance of risk assessement framework in terms of global compliance

– Checking existing policies, procedures and processes for regulatory or conduct changes, adjustments, failures remediation.

Damalion independent experts provide guidance for compliance and regulatory support.

Range of expertise fields include :

– Assessing existing regulatory compliance framework and checking system for proactive measures in case of required updates, changes or best practices

– Contribute to the integration of the Global risk conduct framework

– Assessing the compliance management framework and regulations in accordance with licensing obligations

– Checking the compliance plan applicable across one or more entities of your choice

– Contributing to the performance of compliance related projects

– Supervising issuance of reports -according to required or ad hoc frequency- communicated to the Management committee or Risk committee.

The growing regulatory challenges are also experienced by fiduciary service providers.

That’s why Damalion experts offer you :

– Assistance in set up of regulatory compliance and AML-CFT compliance program

– Set up or monitoring, control of regulatory compliance, AML-CFT/KYC latest developments under Luxembourg laws

– Verification of  AMC/KYC risk-based approach and risk assessment in line with Luxembourg regulations and internal policies, procedures and processes

– Review of due diligence escalation system in case of simplified, standard, enhanced due diligence

– Verification of the onboarding process for new clients, new business opportunities

– Review of due diligence ongoing processes about partners, counterparties, third-party vendors

– Review of customer portfolio compliance framework, alternative investments funds, special purposed vehicles,…

– Contributing to issuance of regulatory compliance, best practices reports communicated to management board

– Upon demand, transaction control assessment.

Damalion experts support accountants in their desire to set a robust regulatory framework in line with Luxembourg compliance requirements.

Our experts provide you with :

– Set up or monitoring and control of risk assessment framework

– Identification of potential risks with negative impact on business continuity and/or in accordance with Luxembourg regulations

– Review of triggering alert procedure about AML-CFT/Compliance and Customer Due Diligence performance

– Design, maintenance, control of risk-based compliance framework with reports about changes, deficiencies remediation

– Verification of the internal alert policies, procedures and processes

– Checking of new customer onboarding, exposure to PEP, control and control frequency of KYC documentation

– Verification of risk mitigation system regarding commercial companies, unregulated investment funds,…

– Guidance for implementation of updated regulatory compliance framework and best practices.

As regulations enroll business companies into the compliance sphere, AML-CFT/KYC included, Damalion experts support you in your need to achieve your strategic objectives and growth.

Our independent experts will guide you in the following implementation :

– Setup, maintenance, monitoring of your regulatory compliance program

– Regular verification (monthly, quarterly, annually) of effectiveness of compliance program

– Process recommendation reports after investigation, mitigation of established or potential risks

– Guide other related persons or departments about compliance related issues

– Contribute to updates in regulatory changes, adjustment of policies, procedures and processes

– Contribute to issuance of actionable reports communicated to management.

Standard perimeter :

Regulatory environment of the Luxembourg funds industry, AIFM, GDPR and AML regulations, MIFID II and CSSF Circular 18/698, 17/650,…

Additional values :

Training:

Setting ongoing compliance/AML-CFT training program  and verify its implementation and effectiveness along with the development of a internal compliance and preventive culture.

Supporting and advising persons in charge across your  other European desks about Luxembourg regulatory compliance framework.

External interaction:

Our expert can liaise with external stakeholders and regulators depending on your specific needs.

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