Time To Act – Luxembourg's UBO Register Coming Into Force

Entities registered with the Register of Commerce and Companies in Luxembourg must provide information on their beneficial owners, or risk large fines.

1 March 2019 sees Luxembourg's Ultimate Beneficial Owner (UBO) Register Law come into effect, and entities in the country must disclose their relevant beneficial owner information in order to be compliant.

The Law, passed by Luxembourg's parliament in late 2018, is in line with the legislation of other European Union member states, and adheres to the 4th Anti-Money laundering (AML) Directive which requires them to maintain a central UBO register. Similar initiatives exist outside of the EU - for example the Register of Registrable Controllers in Singapore, the UBO Register in the Cayman Islands or UBO Database (BOSS) in the British Virgin Islands. All of these registers are designed to contribute to global government efforts to increase financial and business transparency.

Following is the key information for Luxembourg entities. Have questions or need clarifications on the UBO Register, and what you need to do? Simply get in touch with our local experts.

Who is affected by the Luxembourg UBO Register Law?

Any Luxembourg-based corporate entity and other legal entities registered with the trade and companies register, including the Luxembourg branches of foreign entities and listed companies, or legal and fiduciary arrangements - such as trust, foundations and similar arrangements - fall under the UBO Register Law and must comply.

How is the register going to operate?

The Luxembourg UBO register (registre des bénéficiaires effectifs - RBE) will be maintained by the Luxembourg trade and business register (RCSL) and supervised by the Ministry of Justice.

What do I need to do and when?

The Law passed on 18 December 2018 and comes into force on 1 March 2019. Concerned companies have six months from this date to comply with the provisions, so until 1 September 2019.

Compliance requires companies/entities to do the following:

Collect and hold for a period of 5 years adequate internal UBO files at their registered office, including all underlying supporting documentation. The files should include the name, private or professional address, identification number, nationality, place/date of birth and the nature and extent of the interest the beneficial owner holds and a mention of where the information is being kept. Provide this information to the RBE electronically, within one month of incorporation...