Luxembourg’s position as a leading hub for alternative investment funds (AIFs) hinges on its rigorous regulatory framework, particularly in anti-money laundering (AML) and countering the financing of terrorism (CFT). For compliance officers (Responsable du Contrôle or RC) and senior management (Responsable du Respect or RR), understanding the nuances of simplified due diligence (SDD), enhanced due diligence (EDD),…
Luxembourg’s alternative investment fund (AIF) sector, a cornerstone of Europe’s financial landscape, faces evolving challenges in anti-money laundering (AML) and counter-terrorist financing (CFT) compliance. Among these, nominee intermediaries – entities holding assets on behalf of underlying investors – require meticulous oversight to align with Luxembourg’s stringent regulatory framework. For Responsables du Respect (RRs) and Responsables Compliance (RCs), balancing operational…
In Luxembourg’s dynamic financial sector, the risk-based approach (RBA) remains a cornerstone of anti-money laundering and counter-terrorist financing (AML/CFT) frameworks. For professionals serving as Responsable du Respect (RR) and Responsable Compliance (RC), understanding the legal obligations, practical implementation, and evolving supervisory expectations is critical. This article explores the RBA’s foundations, operational challenges, and best practices under Luxembourg’s regulatory hierarchy….
Luxembourg, a leading European hub for securitisation and structured finance transactions, provides a pragmatic and secure legal and tax framework for establishing Special Purpose Vehicles (SPVs). These vehicles, which are crucial in private equity, real estate, leveraged buyouts (LBOs), debt issuance, and listings, benefit from the jurisdiction’s innovative approach and adaptability. Core Technical Requirements for…
As we look back on the state of Luxembourg investment funds law in 2024 and anticipate trends for 2025, several key developments and legislative changes have shaped the landscape. Modernisation of the Investment Funds Toolbox In 2023, Luxembourg enacted a law to modernise its investment funds toolbox, which came into effect in 2024. This law…