LUXEMBOURG'S NEW REGISTER OF BENEFICIAL OWNERS OF CORPORATIONS

Luxembourg's Parliament (Chamber of Deputies) has recently passed a bill setting up a public register of beneficial owners of legal entities. Reports indicate that the new law should become effective in February, 2019, and is a response to the new transparency measures of the European Parliament, and the fourth and fifth AML directives.

All commercial companies and legal entities fall within the new law, which requires that all natural persons in control positions or holding more than 25% of the shares must be identified. His or her personal information must be kept on file, and must be disclosed within one month to the public register, which is available to all.

It is suggested that a copy of the law, known as the RBE Law (7127), be obtained and reviewed by any compliance professional whose bank has Luxembourg companies as customers or clients.

The British Virgin Islands and the Cayman Islands governments have stated that they will create public registers of their corporations when other jurisdictions follow suit. It appears that they can no longer use this excuse to delay publishing public registers in their own countries.