Background and AML/CFT requirements
Article 4 (1) of the Law of 12 November 2004 requires professionals to appoint:
i) a person among the members of their management bodies to be in charge of compliance with the applicable professional obligations in the fight against money laundering and terrorist financing
In the original French version of the Law this officer is referred to as a "responsable du respect des obligations" or “RR”.
ii) a Compliance Officer at the appropriate hierarchical level
In the original French version of the Law this officer is referred to as "responsable du contrôle du respect des obligations" or “RC”.
The CSSF reiterated in its FAQ of 25 November 2019 that every Luxembourg investment fund and investment fund manager subject to AML/CFT supervision is legally required to appoint both an RR and an RC, in view of the results of the National Risk Assessment covering ML/FT risk exposure in the collective investments sector.
The CSSF requires that each RC:
- have sufficient AML/CFT knowledge and expertise with regard to the laws and regulations applicable in Luxembourg, and be able to demonstrate this upon request (training, work experience, etc.)
- be knowledgeable about the investments and distribution strategies of the fund / services offered by the Investment Fund Manager.
RC/RR obligations are a critical priority.
1. Assisting in the obligation of reviewing the framework in place for RC/RR to perform their duties
2. Reviewing the adequacy of the qualifications of the proposed RR/RC
3. Providing experienced individuals to act as RC/AML-CFT Compliance Officer
4. Helping the appointed RC to perform AML/CFT duties:
- Drafting or regular checks and review of the AML/CFT policy to recommend changes or updates
- Annual AML/CFT risk assessment of the company in accordance with CSSF Circular 11/529
- Periodic and ad-hoc written reports to the management / board of directors
- Due diligence and monitoring of service providers and distributors as needed
- Registration with GoAML (FIU)
- Due diligence on assets, ongoing screening and transaction monitoring
- Annual AML/CFT training for relevant persons at the company
- Summary report on RC's activities and operations, at least once annually
- Serving as the central contact with the Luxembourg authorities for AML/CFT purposes
- AML remediation plan
Registered IFMs, authorised IFMs, UCITS, SIFs, SICARs, RAIFs (supervised by the AED for AML matters), other unregulated AIFs.