AML/KYC – PRIIPS – MIFID - EMIR Regulations
Version 1 - Released and Dated 14th November 2022
AML/KYC – PRIIPS – MIFID - EMIR Regulations
Anti-Money Laundering Regulations
Pursuant to the Luxembourg law of 12 November 2004 on the fight against money laundering and against financing of terrorism, as amended, the Luxembourg law of 27 October 2010 enhancing the anti-money laundering and counter-terrorist financing legal framework and the Grand-ducal Regulation of 29 October 2010 enforcing the law of 27 October 2010 implementing United Nations Security Council resolutions as well as acts adopted by the European Union concerning prohibitions and restrictive measures in financial matters in respect of certain persons, entities and groups in the context of the combat against terrorist financing, the Luxembourg law of 25 March 2020 transposing some provisions of the 2018/843 EU Directive (“AMLD 5”) and pursuant to Articles 506-1 – 506-7 of the Luxembourg Criminal Code, obligations have been imposed on all professionals of the financial sector to prevent the use of securitisation vehicle for money laundering purposes.
Within this context, a procedure for the identification of the Investor has been imposed.
Hence, the Subscription Agreement signed by the Noteholder must be accompanied by any supporting documents recommended or prescribed by applicable rules and regulations allowing the appropriate level of identification of the Noteholders and, as the case may be, its beneficial owners.
It is generally accepted that professionals of the financial sector resident in a country which has ratified the conclusions of the GAFI (as defined hereafter) report are deemed to be intermediaries having an identification obligation equivalent to that required under the laws of the Grand Duchy of Luxembourg.
Any information provided in this context is collected for anti-money laundering compliance purposes only.
It should be noted that depending on the status of the Noteholder, additional documents could be required.
As a result, the above list should not be considered as being exhaustive.
The Noteholders should note that the failure to provide the requested documents will result in a delay or the rejection of the subscription, redemption or conversion of the relevant Series of Notes.
As of 1 September 2019, ultimate beneficial owners (bénéficiaires effectifs) of the Notes falling within the scope of the RBO Law will be registered in the register of beneficial owners in accordance with the RBO Law.
In addition, the complete updated list of countries having ratified the recommendations of the GAFI regarding the fight against money laundering is available on www.fatf-gafi.org.
PRIIPs
(Regulation 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packages retail and insurance-based investment products)
The Notes are solely advised on, offered or sold to Professional Clients and, as a consequence, no PRIIPs key information document shall be issued.
Directive on markets in financial instruments (MiFID)
The Issuer has taken all necessary measures to ensure its compliance with the provisions of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, especially in regard to transparency and reporting.
In addition and solely for the purposes of each manufacturer’s product approval process, the target market assessment with respect to the Notes has led to the conclusion that:
(i) the target market for the Notes is eligible counterparties and Professional Clients only, each as defined in MiFID; and
(ii) all channels for distribution of the Notes to eligible counterparties and Professional Clients are appropriate.
EMIR (European Market Infrastructure Regulation)
The Issuer may intend for some or all of the Compartments to make use of OTC derivatives within the meaning of regulation no 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories. AML/CFT Applicable laws In any circumstances, the following laws and regulations are applicable in terms of the prevention of money laundering and the fight against terrorism:
the Luxembourg law of 12 November 2004 modified by the law of 27 October 2010 on the prevention of money laundering and the fight against terrorism (the “AML/CFT Law”);
the Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU;
the Luxembourg law of 25 March 2020 transposing certain provisions of Directive (EU) 2018/843 (“AMLD 5”) entered into force on 30 March 2020 and AMLD 6 dated 12 November 2018
the CSSF Circular 20/744 amending the CSSF circular 17/650 - 17/02/2017: Application of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (hereinafter "AML/CFT Law") and of the Grand-ducal Regulation of 1 February 2010 providing details on certain provisions of the AML/CFT Law ("AML/CFT GDR") to predicate tax offences;
the CSSF Regulation N°12-02 of 14 December 2012 on the fight against money laundering and terrorist financing;
the CSSF Circular 19/732 – 20/12/2019: Prevention of Money Laundering and Terrorist Financing: Clarifications on the Identification and Verification of the Identity of the Ultimate Beneficial Owner(s);
the Luxembourg law of 13 January 2019 Establishing the Register of Beneficial Owners;
the Guidance for a risk-based approach of the FATF (Financial Action Task Force) - June 2019 - Trust and company service providers and;
The Luxembourg Ministry of Finance report dated 20 December 2020 regarding the national valuation of the risks - « Evaluation nationale des risques en matière de blanchiment de capitaux et de financement du terrorisme »
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