After the register of beneficial owners for companies, here comes the Luxembourg register for fiducies and trusts!
On 1 July 2020, bill of law 7216B setting up a Luxembourg register of fiducies and trusts (the “RFT”), under the supervision of the Administration de l’Enregistrement, des Domaines et de la TVA (the “AED”), was passed in Parliament (the “RFT Law”).
Following the adoption of the law of 13 January 2019 establishing a register of beneficial owners (“BOs”) of Luxembourg entities (the “RBE Law”), the RFT Law implements into Luxembourg law the last provisions of Directive (EU) 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”) and certain provisions of Directive 2018/843 of the European Parliament and of the Council of 30 May 2018 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the “5th AML Directive”). The RFT Law also repeals the law of 10 August 2018 on the information to be obtained and held by Luxembourg fiducies, as its relevant provisions have been directly incorporated into the RFT Law.
This Newsflash reviews the main features of the RFT Law, which will impact the obligations incumbent on Luxembourg fiduciaires and trustees, as well as professionals subject to anti-money laundering and counter terrorist financing (“AML-CTF”) obligations under i.a. the amended law of 12 November 2004 on the fight against money laundering and terrorist financing (the “2004 Law”).
Glenn Meyer is a Partner in the Banking & Financial Services practice of Arendt & Medernach. He advises banks, investment firms, payment and electronic money institutions as well as all other professionals of the financial sector on all types of financial regulatory matters as well as on general banking law. He also handles various types of mergers and acquisitions and asset acquisition files in the financial sector. Glenn has also acquired over the years considerable knowledge and expertise in the regulatory framework relating to the combat against money laundering and terrorist financing, general governance requirements, as well as in handling various types of litigation and customer compl...