On 15 January 2019, a new law establishing a Register of Beneficial Owners (Registre des bénéficiaires effectifs, "RBE") for Luxembourg registered entities was published in the Luxembourg Official Journal (Mémorial A) ("RBE Law") and shall enter into force on 1 March 2019. It implements the transparency requirements of article 30 from Directive (EU) 2015/849 of the European Parliament and the Council of 20 May 2015 on the prevention of use of the financial system for money laundering or terrorist financing (4th Anti-Money Laundering Directive, “4AMLD”). The new requirements are applicable to all corporate and legal entities established in Luxembourg.
All corporate and legal entities incorporated in the EU are within the scope of these new requirements. To date, the following countries have transposed the regulation into local law: Luxembourg, Belgium, France, Germany, Guernsey, Jersey and Malta.
The term “Beneficial Owner” is defined by reference to the Law of 12 November 2004, as amended on February 13 2018, regarding the fight against money laundering and terrorism financing (the “AML Law”).
An Ultimate Beneficial Owner (UBO) is:
Each entity has the obligation to:
Entities are required to retain and make available exact and up-to-date information on their Ultimate Beneficial Owners, and to report on them, as defined in the newly voted law.
Information that must be reported includes:
National authorities and certain regulatory bodies/professionals will have direct access to the RBE. Any person will be able to request access to a limited amount of information held in the register.
The entity is responsible for the publication and update.
The law will enter into force on March 1, 2019, requiring that any entity incorporated from March 1st will have one month to file its register. However, the law has foreseen a six month transition period for existing entities, extending the filing period until September 1st.
For any breach in the law in which the entity does not hold required information, holds inaccurate information and supporting documentation about the UBO, or fails to file the information as per the law’s requirements, the entity can be fined an amount between €1,250 and €1,250,000.
Alter Domus can assist you in the creation, maintenance and publication of the UBO register as defined in the Directive in all European countries where Alter Domus is present. This includes Belgium, Cyprus, France, Germany, Ireland, Luxembourg, Malta and Spain.
To find out how we can assist, please address your questions to your dedicated relationship manager.