The enactment on 30 May 2018 of EU Directive 2018/843 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the “5th AML Directive”) (AML 5 – key aspects and changes) has prompted the Luxembourg government to accelerate the final implementation process of EU Directive 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the “4th AML Directive”).
Despite the noticeable progress made in the legislative process of bills of law 7216 and 7217 since December 2017 (RBO new rules to be implemented soon), by which the Luxembourg government intends to implement the parts of the 4th AML Directive relating to the creation of central registers of BOs of Luxembourg legal entities and fiduciary arrangements, and despite the fact that Luxembourg has in the meantime implemented all the remaining parts of the 4th AML Directive, the latter bills of law have still not yet been passed in Parliament.
In view of the fact that the 5th AML Directive partially amends the requirements relating to these registers of BOs under the 4th AML Directive, the Luxembourg government has seized the opportunity to amend bill of law 7217, which relates to the requirement of setting up a register of BOs of Luxembourg legal entities (which has now been renamed from REBECO to “RBE”/ "RBO"), in order to directly reflect such new requirements.
The Luxembourg Parliament is expected to pass these bills of law rapidly and especially bill of law 7217 (which, in view of the last amendments by the Luxembourg government in October 2018, could now be described as being in the final stage of such legislative process), even though the 5th AML Directive has effectively delayed the timeline initially set for these registers to be put in place.
The newsflash available below thus aims at shedding light on the most noticeable changes in the revised bill of law 7217 but also on the amendments which the Luxembourg government is likely to proceed with soon in respect of bill of law 7216 which relates to the requirement to set up a register of BOs of Luxembourg fiduciary arrangements, notably in view of the recent changes introduced by the 5th AML Directive.
Please click on the link below to read the full Newsflash.