The Commission de Surveillance du Secteur Financier (“CSSF”) issued an updated FAQ on 11 March 2021 (initial version of November 2019) regarding the persons involved in Anti-Money Laundering and Combating the Financing of Terrorism (“AML/CFT”).

Iinvestment funds and investment fund managers are reminded to give due consideration to AML/CTF obligations and ensure that their governance and risk management arrangements are appropriate and enable them to identify, assess and manage all risks to which they are exposed.

The FAQ aims to give certain recommendations regarding the persons involved in the AML/CFT obligations for the investment funds or the investment fund managers.

The investment fund and the investment fund manager are subjects to AML/CFT obligations deriving among others from the Luxembourg law of 12 November 2004 (the “AML Law”).

1. appointments within the investment fund

The fund needs to appoint:

•  a person responsible for compliance (responsable du respect des obligations) with AML/CFT obligations (the “RR”); and
• a compliance officer (responsable du contrôle du respect des obligations) at appropriate hierarchical level (the “RC”) (if the size and nature of the activity of the fund so require).

The CSSF has clarified some points regarding the RR and RC in accordance with article 4(1) of the AML Law as follows:

• every Luxembourg Investment Fund and Investment Fund Manager subject to AML/CFT must appoint both an RR and RC
• the RR can be the board of directors on a collegiate basis or one of the members of the board of directors; and
• the RC can be a member of the board of directors or the fund can appoint a third party. The RC must acknowledge the appointment in writing. The RC can be chosen among the staff of the designated Investment Fund Manager.

2. appointments for the investment fund manager

As a general rule, the investment fund manager needs to appoint:

▪ a RR that can be the board of directors on a collegiate basis or one of the members of the board of directors; and

▪ the RC that shall be the compliance officer at appropriate level in charge of AML/CFT aspects of the investment fund manager.

3. requirements of the RR and RC

 In all cases, the RR and RC must fulfil the following conditions:

▪ have sufficient AML/CFT knowledge regarding the applicable Luxembourg legislation and can demonstrate this upon request;

▪ are knowledgeable about the investments and distribution strategies of the fund; and

▪ are available and reachable without delay upon request by the CSSF.

The RC should have access to all internal documents and systems necessary for performing his/her tasks (especially relevant if the RC is not present in Luxembourg on an on-going basis).