FAQ regarding persons involved in AML/CFT for a Luxembourg Investment Fund or Investment Fund Manager supervised by the CSSF for AML/CFT purposes is a CSSF FAQ, published 25 November 2019.
\nRelevant for: AIFMs, Central Securities Depositories (CSDs), Credit institutions, Credit servicers, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, UCITS.
\nMain topic: Financial crime. Keywords: AML/CFT.
\nFrequently Asked Questions AML/CFT PERSONS INVOLVED IN AML/CFT FOR A LUXEMBOURG INVESTMENT FUND OR INVESTMENT FUND MANAGER SUPERVISED BY THE CSSF FOR AML/CFT PURPOSES
\nFREQUENTLY ASKED QUESTIONS AML/CFT Unrestricted Version: Version diffusée
\nFrequently Asked Questions AML/CFT
\nUpdate March 2021: The entry into force of the CSSF Regulation n° 12-02 of 14
\nDecember 2012 on the fight against money laundering and terrorist financing as amended by CSSF Regulation n° 20-05 of 14 August 2020 does not change the content of these FAQs.
\nQuestion 1: How do the requirements of Article 4(1) of the Law of 12 November 2004 as amended (“the Law”) that call for the appointment of two different persons in charge of AML/CFT need to be implemented by a Luxembourg Investment Fund or Investment Fund Manager supervised for AML/CFT purposes by the CSSF ? Answer: Article 4 (1) (fourth paragraph and second paragraph, sub-paragraph a) of the Law requires professionals to appoint: i) a person among the members of their management bodies, responsible for compliance with the professional obligations as regards the fight against money laundering and terrorist financing (the original French version of the law refers to a “responsable du respect des obligations” and thus, the acronym “RR” will be used hereafter), and ii) if the size and nature of the activity so require, a compliance officer at appropriate hierarchical level (the original French version of the law refers to a “responsable du contrôle du respect des obligations” and thus, the acronym “RC” will be used hereafter). Taking into consideration the results of the National Risk Assessment regarding in particular ML/FT risk exposure of the sector of collective Investments i.e. Investment Funds, the CSSF would like to recall 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. This means the following in practice : 1. For Investment Funds supervised by the CSSF for AML/CFT purposes : The following rules are general rules, these may however need to be adapted on a case-by-case basis since it is not possible to address all the different scenarios in these FAQs : FREQUENTLY ASKED QUESTIONS AML/CFT Version: Version diffusée
\nThe RR can be the board of directors (or other governing body depending on the legal structure of the Fund) acting as a collegial body . Alternatively, the board may appoint one of its members as RR. The RR must be reachable for any contact by the Luxembourg AML/CFT competent authorities.
\nThe RC shall be mandated intuitu personae by the board of directors (or other governing body) of the Fund. o The RC may be a member of the board with appropriate experience meeting the conditions set forth in the answer to Question 2 below. o Or, where the Fund appoints a third party RC, the Fund must enter into a contractual relationship with the RC personally or, where the contract is concluded with the employer of the RC, (i) the contract must name the RC, (ii) any replacement of the RC must be subject to the Fund’s approval and (iii) the RC must acknowledge its appointment in writing. o Said appointee can for example be chosen among the staff of the designated Investment Fund Manager (IFM) of the Fund (in case the Fund has designated an IFM). o As a principle, the RC must be available in Luxembourg, for the accomplishment of his/her tasks. However, on an exceptional basis, and under the conditions set forth in the answer to Question 2 below, it is acceptable that the RC is located outside of Luxembourg, if the IFM and its relevant staff member acting as RC are not domiciled in Luxembourg.
\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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