CSSF FAQ: Persons Involved In AML/CTF For Investment Funds/Managers

On 25 November 2019, the CSSF issued an FAQ on persons involved in AML/CTF for a Luxembourg fund or investment fund manager ("IFM") supervised by the CSSF for AML/CTF purposes. The aim of the FAQ, which is currently composed of two questions, is to share the CSSF's interpretation of Article 4(1) of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended ("AML Law").

While the FAQ is only applicable to entities subject to the CSSF's supervision, unregulated funds may nevertheless wish to take its provisions into account since they are subject to the AML Law as well.

In Question 1 of its FAQ, the CSSF recalls that in its view, every Luxembourg fund and IFM subject to AML/CTF supervision is legally required to appoint:

- a person from among the members of their management bodies, to be responsible for compliance with AML/CTF obligations, in French a "responsable du respect des obligations" ("RR"); and - a compliance officer at the appropriate hierarchical level to ensure the control of compliance with AML/CTF obligations, in French a "responsable du contrôle du respect des obligations" ("RC"). In practice, the CSSF expects that any Luxembourg regulated fund designates:

- one of its governing body's members or the governing body (e.g. board of directors) in its entirety as RR (as a collegial and ultimate management body, it is in any case responsible for AML/CTF matters); and - a member of the governing body or a third-party appointee (e.g. from the staff of the IFM of the fund) as RC who will be in charge of the day-to-day AML/CTF tasks. In cases where the RC is a third-party appointee, the CSSF provides additional...