Recent discussions and clarifications, amongst others, within AED and between ALCO and AED concluded that RAIFs and other non-CSSF-regulated investment funds are indeed subject to AML/CFT laws and regulations and to the AED’s supervision.

Therefore, the non-CSSF-regulated investment funds’ AML/CFT framework shall be compliant with the Grand Duchy of Luxembourg’s AML/CFT legislation, the Grand Ducal regulations, and the applicable and relevant AED’s guidelines. As regards the timeframe, an adequate AML/CFT framework shall be implemented immediately and definitely before the end of the year. Proportionality principle would not apply.

FundDO expert supports the establishment and implementation of an AML/CFT policy and procedure, the definition of the funds’ ML/TF risk appetite and its risk assessment methodology. Then, the expert can set-up the AML/CFT due diligence on all investors, assets and counterparties and guide through performing such DD. In addition, the expert can support in the provision of an AML/CFT annual report, an annual AML survey, he can provide the RR role himself and support the establishment of the RC function.

Reference is made to the ALCO publication dated 18 November 2022 https://www.alco.lu/post/anti-money-laundering-no-regulatory-turf-war?postId=f75db99e-d864-491a-8612-a82cf8fd32ca&utm_campaign=b7daa7be-47ee-42f1-8cc0-b8770304084c&utm_source=so&utm_medium=mail&utm_content=184ed56d-d4f3-4b12-b4b5-79c1de7aee45&cid=5d7b1233-40af-467c-a1ee-7630311313b8