The glossary to understand and take action

KYC — know your customer

KYC covers customer due diligence procedures used in particular as part of anti-money laundering due diligence obligations.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The file aims to understand the client’s identity, activities and the persons who control the client. Documents and updates depend on the situation and risk; they must be transmitted through a channel suitable for sensitive data.

In your file

What this changes in practice

The KYC process aims to know the client and the business relationship within the framework of the obligations applicable to the professional. Depending on the risk, it may include identity, activity, ownership structure and source of funds. It does not necessarily end upon signing the contract. Significant changes must be taken into account, with proportionate collection and secure handling of documents.

A scenario to help you understand

Educational example

A company changes its controlling shareholder. It provides its service provider with the information required to update the client file and the beneficial owner.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Décrire la structure de détention
  • Actualiser les changements significatifs
  • Sécuriser la transmission des justificatifs

The practical question

Find out more

Pourquoi préparer un organigramme de détention à jour ?

Il aide le professionnel à comprendre les entités intermédiaires et les personnes qui contrôlent le client. Joignez les informations permettant d’expliquer les participations et les changements récents. Un organigramme sans date ou incohérent avec les registres crée des demandes supplémentaires. Le niveau de détail requis dépend de la structure et des obligations du professionnel.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Anti-money laundering — AML/CFTAnti-money laundering and counter-terrorist financing requires the professionals concerned to comply with due diligence, organisational and cooperation obligations.Beneficial ownerThe beneficial owner is the natural person identified, according to legal criteria, as ultimately owning or controlling an entity or transaction.Data minimisationA principle consisting of limiting the personal data used to what is necessary for the intended purpose.RBEThe Register of Beneficial Owners (RBE) receives information on natural persons identified as beneficial owners of the entities concerned.Indirect controlThe ability to exercise control over an entity through one or more intermediate structures or relevant rights.Insurance Commission (CAA)The CAA is the supervisory authority for the insurance sector in Luxembourg. Its scope includes, in particular, insurers, reinsurers and intermediaries covered by the applicable framework.

Put it into practice

Explore further with our guides

Practical guideCompany KYC file: preparing for the fiduciary’s checks

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.