The Luxembourg Government released on 6 December 2017, the widely awaited draft bill n°7217 (the “Draft Bill”) providing for a register of ultimate beneficial owners (the “UBO”) and implementing article 30 of directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 (hereinafter referred to as the “Register”).
The Register will be managed by Luxembourg Trade and Companies Register (“RCSL”) through a separate database under the authority of the Ministry of Justice and a special commission created to handles relating cases.
The salient points of the Draft Bill are as follows:
– All Luxembourg commercial
companies and entities with legal personality registered with the RCSL (the ”Entities”)
– listed companies and branches of foreign companies in Luxembourg
The Required Information must be kept by the Entities 5 years after their dissolution at a place of their choosing.
|Unrestricted access refers to
Unconditional Restricted Access refers to
Conditional Restricted Access refers to
Exemptions may apply
|The Entities or their authorized representatives face a fine ranging from EUR 1,250 to EUR 1,25 million for
professionals who knowingly request access to the Register outside the scope of their due diligence obligations
It is noteworthy that the Draft Bill in its current wording ensures a reasonable and multilayered protection to UBOs ensuring their privacy on the one hand and complying with the transparency requirements set forth by the directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015. As a result the competitive edge of Luxembourg in the wealth management and asset protection industry is maintained compared to other jurisdictions such as the Netherlands or the United Kingdom, where access is unrestricted.
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