4th Anti-Money Laundering Directive and the RBE
Luxembourg Register of Beneficial OwnersOn the 1stof March 2019 a new law entered into force in Luxembourg. Due to its broad scope, it applies to all forms and types of entities registered with the RSC (Company registrar), encompassing companies and partnerships whether or not regulated, including Luxembourg investment funds and other types of pension saving associations and companies.
The European Union’s Directive 2015/849, better known as the 4thAnti-Money Laundering Directive, regulates prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
Articles 30 and 31 provides an obligation for Luxembourg entities to gather and register information about their beneficial owners in Luxembourg Register of Beneficial Owners (“RBE”). This register will be managed and monitored under the control and supervision of the Luxembourg Business Registers on behalf of the Luxembourg Ministry of Justice.
What does this fancy jargon mean?If you have a registered business (with RSC) in Luxembourg, you have to register the beneficial owners with the RBE.
The beneficial owners in question include:
- any natural person who ultimately owns or controls the legal entity; or
- any natural person on who's behalf a transaction is conducted or and activity is undertaken; or
- if no beneficial owner can be clearly identifies, the most senior executive of the registered entity.
Requested InformationThe information you are required to file with the RBA includes:
- first name(s) and last name;
- date and place of birth;
- country of residence;
- precise private or professional address;
- national or foreign (tax) identification numbers;
- nature and scope of beneficial ownership held by them.
The information shall be filed by the Registered Entities within one month following the receipt or the acknowledgement of such information and is subject to administrative costs, however, these costs shall not apply during the transitional period (March until August 2019).
All data will be kept by the RBE for a period of five (5) years after the date on which the Luxembourg entity was removed from the RCS.
Who will have access to the information?From 1 September 2019, anyone will be able to access the RBE database online, free of charge, through the RBE portal on the LBR website.
All Luxembourg national authorities, which amongst others include, CRF, the CSSF, the CAA, the Luxembourg tax authorities (Administration des contributions directes et Administration de l’enregistrement, des domaines et de la TVA, Administration des douanes et accises), public prosecutors and investigative judges will have full access to the information.
An entity can however, under certain conditions and for a limited period of time (per discretionary basis) request for the information to remain confidential or to restrict public access.
SanctionsThe Law provides for a fine between EUR1,250 and EUR1,250,000 for a registered entity which:
- fails to file their beneficial ownership details with the RBE;
- files inaccurate, incomplete or out-of-date beneficial ownership details.
The Beneficial Owner is subject to a fine between €1,250 and €1,250,000 for failing to provide the required information.
DeadlineIt is strongly advised that entities comply with their new obligations by Friday, 30 August 2019.
How do I file?Details must be filed online with the Register of Beneficial Owners (RBE).
You can click on the link below to take you to the applicable website address:
The applicant must log in to the LBR website using a LuxTrust Certificate.
Once the entity filing for registration on the LBR website has been identified, an online electronic filing form is made available, complete the requested fields, validate the form and save. In certain specific cases, supporting documents will need to be provided. Once you have saved the form, you will need to move it to your LBR basket and complete the transaction (free of charge).
Within 3 business days, the applicant will receive a confirmation receipt for the successful filing with the RBE, however if the applicant fails to meet the requirements a RBE Register Manager will ask the filing entity to remedy the shortcoming within 15 days.
22 Jul 2019