5MLD – Fiduciary arrangements and trusts: new obligations

The 5th anti-money laundering directive (5MLD), which amends Directive (EU) 2015/849 (4MLD), has been implemented into Luxembourg law by various pieces of legislation. The last piece of the puzzle is the act of 10 July 2020 implementing Article 31 4MLD, as amended by 5MLD, in relation to the register of fiducies and trusts (the RFT Act).

The RFT Act, which is separate from the amended act of 12 November 2004 on the combat against money laundering and terrorist financing (the AML Act) and the amended act of 13 January 2019 pertaining to the register of beneficial owners , deals with two different topics:

• the information on beneficial owners to be obtained and retained by trustees/fiduciaries – Chapter 2 of the RFT Act; and
• the creation of a register of fiducies and trusts – Chapters 3 to 5 of the RFT Act.