Circular CSSF 21/788 is a CSSF circular, published 17 December 2021 and updated 22 December 2021. Subject: Guidelines for the Collective Investment Sector on the CSSF AML/CFT external report.
\nRelevant for: AIFMs, Investment fund managers, Management companies - Chapter 15, Management companies - Chapter 16, Part II UCIs, SICARs, SIFs, UCITS.
\nKeywords: AML/CFT, Approved statutory auditor (réviseur d'entreprises agréé), eDesk.
\nCircular CSSF 21/788 Re: Guidelines for the Collective Investment Sector on the CSSF AML/CFT external report
\nLuxembourg, 17 December 2021
\nTo all Luxembourg investment fund managers including registered AIFMs and all Luxembourg investment funds supervised by the CSSF for AML/CFT purposes.
\nLadies and Gentlemen, The purpose of this circular is to provide guidance on the report dedicated to AML/CFT (hereafter the “CSSF AML/CFT external report”) that must be drawnup by an “external AML/CFT expert” (as defined in section 1.3 of the present circular) and submitted to the CSSF in accordance with Article 49 of the CSSF Regulation No 12-02 of 12 December 2012 on the fight against money laundering and terrorist financing, as amended (hereafter “RCSSF 12-02”) which requires that the audit of, in particular, Luxembourg Investment Funds supervised by the CSSF and Luxembourg Investment Fund Managers’ annual accounts by the réviseur d’entreprises agréé, as required by: -
\nArticles 104(1),126(1) and 154(1) of the Law of 17 December 2010 relating to undertakings for collective investments;
\nArticle 7(6) of the Law of 12 July 2013 on alternative investment fund managers;
\nArticle 55(1) of the Law of 13 February 2007 relating to specialised
\nArticle 27(1) of the Law of 15 June 2004 relating to the investment company
\ninvestment funds; and in risk capital (SICAR), includes work by the REA regarding the compliance with the legal and regulatory AML/CFT obligations and provisions. For registered AIFMs as defined in Article 3(2) of the Law of 12 July 2013 on alternative investment fund managers, the Article 49(5) of the RCSSF 12-02 draws its legal grounds from Article 8-2(1) of the Law of 12 November 2004, as amended, on the fight against money laundering and terrorist financing allows the CSSF to require réviseurs d’entreprises agréés to carry out on site verifications or investigations of persons subject to [its] supervisory powers as defined in Article 2-1 of the aforementioned law.
\n1.1
\nScope
\nThe CSSF AML/CFT external report mentioned in Article 49 of the RCSSF 12-02 is required from all Luxembourg investment fund managers 1 including registered AIFMs as well as from all Luxembourg investment funds supervised by the CSSF for AML/CFT purposes. Any such professional is hereafter referred to as “supervised entity in scope”.
\n1.2
\nExemptions
\nThe CSSF AML/CFT external report mentioned in Article 49 of the RCSSF 12-02 is not required from Luxembourg investment funds which have appointed an Investment Fund Manager (established in Luxembourg or abroad). For the exempted funds, the external auditor of the investment funds must nevertheless perform AML work as prescribed in Article 49 (1) of RCSSF 12-02 as amended. Significant deficiencies noted during the AML/CFT work of the REA must be reported in management letters, including in relation to exempt funds.
\n1.3
\nMandate
\nAll professionals which have the legal requirement to appoint a réviseur d’entreprises agréé (approved statutory auditor) (hereafter “REA”) for the purpose of the audit of their annual accounts, shall appoint this same REA to prepare the CSSF AML/CFT external report. The REA acting in that capacity is referred to as “external AML/CFT expert” for the purposes of the present circular. As per Article 49 (5) of the RCSSF 12-02 is to be understood as meaning that all professionals subject to this circular and which do not have the legal requirement to appoint a REA for the purpose of the audit of their annual accounts must mandate a REA for the specific purpose of preparing the CSSF AML/CFT external report.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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