FundDO Specifics

November 2022

AML/CTF support for non-CSSF-regulated investment funds

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

April 2020

FundDO director will take RC (Ch16) and RR function

FundDO can take
(1) RR function for Fund,
(2) RC function for Chapter 16 ManCo,
(3) RR function for IFM

  1. AML/CTF Fund Board function of RR (“responsable du respect des obligations”), as independent director to the Fund, with specific experience in contract and processes set-up with RC, IFM and transfer agent
  2. Function of RC (“responsable du contrôle du respect des obligations”) mandated by the Board of Directors of the Management Company, either as a member of the Board, or as a third party RC
  3. AML/CTF Board function of RR as independent director to the IFM, with specific experience in contract and processes set-up with RC, IFM and transfer agent

FundDO expert can serve to any of the above listed scenarios and can demonstrate all knowledge and experience as requested by CSSF – reference is made to CSSF FAQ dated 25 November 2019

CSSF FAQ (82Kb pdf)

With respect to the RR, the CSSF requests notably that the RR:

  • has sufficient AML/CFT knowledge with regard to the applicable Luxembourg legislation and regulation and can demonstrate (e.g. trainings) this upon request,
  • is knowledgeable about the investments and distribution strategies of the Fund/about the ser-vices offered by the IFM, and
  • will be available without delay upon contact by the Luxembourg AML/CFT competent authori-ties (if the RR is a collegial body, at least one of its members must fulfil this requirement).

With respect to the RC, the CSSF requests that the RC :

  • has sufficient AML/CFT knowledge and expertise with regard to the applicable Luxembourg leg-islation and regulation and can demonstrate (e.g. trainings, work experience, etc.) this upon request,
  • is knowledgeable about the investments and distribution strategies of the Fund/about the ser-vices offered by the IFM,
  • will be available without delay upon request by the Luxembourg AML/CFT competent authori-ties, and
  • has access to all internal documents and systems required necessary for performing its tasks. This condition is particularly relevant where the RC is not present in Luxembourg on an on-going basis.