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AML & Financial Services Regulatory

Luxembourg: 12 November 2022 – AML/CFT submission deadline for non-regulated alternative investment funds

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In brief

On 12 October 2022, the “Administration de l’enregistrement, des domaines et de la TVA” (AED) released on its website several documents regarding the AML/CFT supervision of Luxembourg alternative investment funds (AIFs) that are not supervised by the “Commission de surveillance du secteur financier” (CSSF) (“Unregulated AIFs“).

The AED requires Unregulated AIFs to do the following:

For further information on what this development might mean for you and assistance with completing the required documentation, please get in touch with your usual Baker McKenzie contact.

Key takeaways

The following documents regarding the AML/CFT supervision of Unregulated AIFs have been released on the AED’s website:

  • An FAQ regarding the RR and the RC

In this FAQ, the AED requires all Unregulated AIFs to appoint the following:

  1. A person from among the members of their management bodies responsible for compliance with the professional obligations as regards the fight against money laundering and terrorist financing (a “responsable du respect des obligations” or “RR”).
  2. If the size and nature of the activity so require, a compliance officer at the appropriate hierarchical level (a “responsable du contrôle du respect des obligations” or “RC”).

The FAQ provides additional guidelines and sets forth supplementary requirements in relation to the RR and/or RC appointments.

Unregulated AIFs must return to the AED the duly completed “AIF RC RR Identification Form” with the signed legal documentation (minutes of board meetings or circular resolutions of the governing body of the AIF acting for and on behalf of the AIF) related to any appointment of the RC and/or RR of the Unregulated AIF. The AED pointed out that this form must be transmitted without delay in case of the initial appointment or the replacement of the RC and/or RR. 

The AED also invites Unregulated AIFs, through their RR or RC to fill in and transmit the “AIF AML/CFT Questionnaire 2021” for the financial year ending in 2021 by close of business on 12 November 2022 at the latest. A dedicated guide for completion is available on the AED’s website.

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Author

Laurent Fessmann is a Banking & Finance partner specializing in the formation and structuring of Luxembourg investment funds. He is a former managing partner of the Luxembourg office and the current co-chairman of the Baker McKenzie's Global Funds Steering Committee. He started his career in 1996 as in-house counsel in a French CAC40-listed company where he worked intensively on LBO transactions, capital markets and corporate law matters. Mr. Fessmann joined a Luxembourg business law firm where he became a partner prior to founding his own law firm in 2009. He is a highly regarded professional and recognized legal professional in Chambers, Legal 500, IFLR notably. He contributes time and knowledge in several market participant industry associations in particular as co-chairman of the ABBL/ALFI depositary forum working groups, the European Public Real Estate Association, the Luxembourg Private Equity Association and the Association of Global Custodians. He is also a regulator at fund conferences such as ALFI, IBCI and regularly invited to speak on internal or bank seminars.

Author

Catherine Martougin is a partner in the Funds & Asset Management team of the Baker McKenzie Luxembourg office. She has more than 20 years' experience in business law. Prior to joining the Firm, she practiced in elite international law firms in Paris and Luxembourg.

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