On July 1^st, 2020 Luxembourg’s Parliament passed bill 7216B (the “RFT” Law), implementing the provisions of the EU Directives (EU 2015/849 of Ma1 20^th 2015 and EU 2018/843 of May 30^th 2018), also known as the 4^th and the 5^th AML Directives.

The subjects of RFT Law will be:

All fiducie and express trusts which have a fiduciaire or trustee established/domiciled in Luxembourg;
All fiducie and express trusts with fiduciaries or trustees established/domiciled outside of Luxembourg, but which enter in a business relationship on Luxembourg’s territory with a professional or an entity subject to the 2004 Law, or acquire real estate in Luxembourg.

It is to be noted that according to the RFT Law, the notions of trust and trustee are those as expressed by the Hague Convention of July 1^st 1985 on the law applicable to trusts and on their recognition.

Obbligations

Under the new law, trustees and fiduciaries must set-up an “internal file”, obtaining and holding information on the instrument and all persons identified as beneficial owners (BOs). The law also specifies that the following are classified as BOs:

The settlor
The trustee/fiduciaire
The protector
The beneficiaries
Any other entity exercising ultimate control over the trust/fiducie

All of the above information must be accurate, adequate and up-to-date, and will need to be kept for 5 years. Furthermore, the abovementioned information will be made available through the register to:

National competent authorities (i.e. tax administrations, CAA, CSSF or the public prosecutor, upon their request);
Professionals entering into a transaction with the trust/fiducie and exceeding the relevant thresholds as expressed by Law 2004 (such professionals will also be entitled to request information on the trust/fiducie assets under management).

SOURCE: www.chd.lu