On July 1st, 2020 Luxembourg’s Parliament passed bill 7216B (the “RFT” Law), implementing the provisions of the EU Directives (EU 2015/849 of Ma1 20th 2015 and EU 2018/843 of May 30th 2018), also known as the 4th and the 5th AML Directives.
The subjects of RFT Law will be:
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 1st 1985 on the law applicable to trusts and on their recognition.
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:
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: