Bahamas, Belize, Seychelles, and Turks and Caicos Islands removed from EU Council Non-Cooperative Tax Jurisdictions List

The Council of the European Union recently updated its list of non-cooperative jurisdictions for tax purposes on 20 February 2024, which saw the removal of the Bahamas, Belize, Seychelles, and the Turks and Caicos Islands. These changes reflect each jurisdiction’s commitment to adhering to international standards for tax transparency, fair taxation, and the implementation of measures to prevent tax base erosion and profit shifting (BEPS).

A crucial aspect of these jurisdictions’ compliance efforts has been their enhancement of Anti-Money Laundering (AML) regulations. AML measures are vital for combating financial crimes and ensuring the integrity of the international financial system. By strengthening their AML frameworks, these countries have addressed the EU’s concerns regarding the prevention of money laundering and terrorist financing, which are closely linked to tax evasion and avoidance practices.

The updated list of non-cooperative jurisdictions highlights the ongoing global effort to maintain global tax governance standards, transparency, and fairness. The European Union continues to work with international partners to promote compliance and cooperation in the field of taxation.

As of this latest update, the EU’s list now comprises 12 countries that are still under scrutiny for their tax practices and AML frameworks. These jurisdictions include:

  1. American Samoa
  2. Anguilla
  3. Antigua and Barbuda
  4. Fiji
  5. Guam
  6. Palau
  7. Panama
  8. Russia
  9. Samoa
  10. Trinidad and Tobago
  11. US Virgin Islands
  12. Vanuatu

These developments encourage other jurisdictions to continue improving their regulatory frameworks to meet international standards and avoid being listed as non-cooperative by the EU and other global entities. The next revision of the list is scheduled for October 2024.

Should you have any inquiries or require expert guidance pertaining to the information provided, our investment management team is available to assist you. Please feel free to contact us.  


AML/CFT supervision of unregulated alternative investment funds (excluding RAIFs) by the AED

The Luxembourg Registration Duty, Estate and VAT Authority (in French, l’administration de l’enregistrement, des domaines et de la TVA or “AED”) has under its anti-money laundering and counter financing of terrorism (“AML/CFT”) supervision Luxembourg alternative investment funds being unregulated and not supervised financial vehicles by any other Luxembourg supervisory authority (“unregulated AIFs”).

In such respect, the AED has recently added a specific section on its website regarding these unregulated AIFs ( Indeed, the AED requests the unregulated AIFs to complete and file:

(i) an identification form related to (a) the person responsible for the control of the compliance of the AML/CFT obligations at the appropriate hierarchical level (in French, “responsable du contrôle du respect des obligations” or the “RC”) and (b) the responsible for the compliance with the professional obligations as regards the AML/CFT (in French “responsable du respect des obligations” or the “RR”) (the “RR/RC Form”) ( ; and

(ii) a yearly AML/CFT Questionnaire covering the financial year 2021 (the “Questionnaire”) (

In order to correctly complete the RR/RC Form and the Questionnaire, the AED has published frequently asked questions and guidelines documents on its website.

Certain unregulated AIFs have received communication from the AED asking them to complete and file the RR/RC Form and the Questionnaire by 12 November 2022 at the latest. In case you have not received such a communication, it is recommended to anticipate AED’s request and, therefore, to prepare the RR/RC Form and the Questionnaire together and to submit such documents in advance to the AED. In addition, the RR/RC Form must be transmitted to the AED without delay in the following situations:

  • Initial appointment of the RC and/or RR of the unregulated AIF; and
  • Change of the RR and/or RC of the unregulated AIF.

As a general reminder, all Luxembourg investment funds and Luxembourg investment fund managers shall establish an AML_CFT governance framework (AML_CFT policy, risk assessments, appointment of RR/RC etc.).

Please feel free to contact our investment management team concerning the completion of the Questionnaire and the RR/RC Form or any further questions on this matter.

CSSF update of FAQ market entry form for investment funds and IFMs

The CSSF updated on 4 October 2022 its Frequently Asked Questions regarding the AML/CFT market entry form for investment funds and investment fund managers (the “IFMs”) (the “FAQ”). A market entry form shall be completed by supervised funds (UCITS, UCI Part II, SIF, SICAR, or when asking authorization of a label (ELTIF, EUSEF, EUVECA or MMF) in relation to the set-up but also in case of approval of new sub-fund. It shall also be completed for the set-up of an authorized IFM or the registration of an IFM and adapted by such IFM in case of (i) approval of an additional license, a license extension including the request to manage an ELTIF, (ii) entry of a qualified shareholder in the shareholding structure of the IFM and/or (iii) merger (only if the merger leads to a change to the information provided in the Market Entry Form for the absorbing IFM). 

The FAQ aims to assist with the proper completion of the AML/CFT market entry form on eDesk.  

The updated FAQ clarifies the situation of the reporting of indirect shareholders, each holding less than 10% of the shareholdings of an IFM. In such a situation, it is not required to report such shareholders to the CSSF, but the CSSF requests to be provided with the following:  

  • A written confirmation (from the IFM, the shareholder, the proposed acquirer or its representative) that each non-reported indirect shareholder is individually and, on an aggregate basis, holding less than 10% of the indirect shareholding of the IFM; 
  • The maximum percentage that the most non-reported shareholder(s) is/are holding in the IFM;  
  • A written confirmation that there is no shareholder agreement in place at the level of non-reported shareholders;  
  • A written confirmation (from the IFM, the shareholder, the proposed acquirer or its representative) that there has been no AML/CFT sanction over the last five years for the indirect non-reported shareholders; and 
  • Any other document requested by the CSSF. 

Feel free to contact our investment funds team regarding the completion of the AML/CFT market entry form. 

Amendment to the Luxembourg AML Law - Time to update your AML policies

The law of 29 July 2022, which entered into force on 12 August 2022, amended the Law of 12 November 2004 on the fight against money laundering and terrorist financing, transposing Directive 2001/97/EC of the European Parliament and of the Council of 4 December 2001 amending Council Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering (the AML Law).

Following such amendments, professionals in the scope of such legislation will need to update their AML policies and procedures, in particular regarding customer due diligence, to provide, amongst other things, for the following obligations :

  • To determine the extent of the customer due diligence requirements according to the assessment of risks relating to types of customers, countries or geographical areas and particular products, services, transactions or delivery channels;
  • To compare the information collected with that in the registers (i.e. register of beneficial owners, if available) in order to detect any erroneous data or the absence of all or part of the data or the lack of registration, amendment or deletion. Professionals shall proceed in the same way in the context of the exercise of constant vigilance of the business relationship;
  • To retain copies of the documents, data and information collected as part of the due diligence process;
  • To apply enhanced due diligence requirements where a customer or a person purporting to act on behalf of or for the customer or beneficial owner is a PEP, i.e., to:

(a) have appropriate risk management systems, including risk-based procedures, to determine if the customer, the person purporting to act on behalf of or for the customer or beneficial owner is a politically exposed person;

(b) obtain senior management approval for establishing or continuing, for existing customers, business relationships with such persons;

(c) take reasonable measures to establish the source of wealth and source of funds that are involved in the business relationship or transaction with such persons;

(d) conduct enhanced ongoing monitoring of the business relationship.

Please get in touch with our investment management team if you wish assistance.

New CSSF FAQ on AML/CFT RC reports for Luxembourg investment funds and managers

The CSSF published on March 18 a new frequently-asked questions document on the completion and transmission of the AML/CFT compliance officer’s summary report, as defined in articles 42 (6) and 42 (7) of the amended CSSF Regulation 12-02 of December 14, 2012 on measures to curb money laundering and financing of terrorism.

Who is required to prepare and submit the report?

The compliance officer (in French, responsable du contrôle) of Luxembourg AIFMs, Luxembourg-domiciled investment funds that have appointed a foreign AIFM and self-managed funds are required to prepare the report and present it to the entity’s management board, and submit it to the CSSF. The report must be dated and signed by the compliance officer (RC). It must be prepared even if the inquiries and due diligence carried out by the RC revealed no shortcomings.

When and how should the report be submitted?

The AML/CFT RC report must be submitted within five months following the end of the entity’s financial year either via e-file or Sofie for entities subject to CSSF Circular 19/708, or via the edesk module for registered AIFMs.

What should the report contain?

The AML/CFT report should be a consistent and accurate description of the work performed by the RC and of related findings.

For entities subject to CSSF Circular 18/698, the report must at least:

  • Results of the identification and assessment of money laundering and financing of terrorism risks and measures taken to mitigate them, as well as the AIFM’s risk level tolerance.
  • Results of due diligence conducted on clients, fund initiators, portfolio managers to whom management is delegated and investment advisers, including ongoing due diligence.
  • Results of enhanced due diligence conducted on intermediaries acting on behalf of their clients in accordance with the provisions of article 3 of CSSF Regulation 12-02, including ongoing due diligence.
  • Results of enhanced due diligence on individuals identified as politically exposed persons in according to article 3-2(4)(d) of the amended law of November 12, 2004 on money laundering and financing of terrorism.
  • Results of due diligence conducted on fund assets, including ongoing due diligence.
  • Monitoring any positions blocked due to AML/CFT concerns in the registers of fund unit-holders and/or intermediaries involved in the marketing of funds.
  • Periodic review of all business relationships according to their risk level.
  • In cases of delegation of tasks relating to professional obligations to third parties, results of monitoring carried out on the compliance of services provided by the third parties, not only with legal and regulatory provisions but also the contractual provisions; and where relevant, reasons why the fund manager has chosen new third parties during the year.
  • Statistical history concerning transactions identified as suspicious that inform the number of suspicious transaction cases reported to the Financial Intelligence Unit by the fund manager, as well as the total volume of funds involved.
  • Statistical history concerning transactions reported due to financial sanctions relating to financing of terrorism and those relating to implementation of United Nations Security Council resolutions and acts adopted by the European Union as well as the volume of funds involved.
  • The number of identified breaches of AML/CFT professional obligations, even if the number is zero.
  • The number of AML/CFT actions carried out notably as a result of Circular CSSF 18/698, from the work of the RC, the internal audit, external audit or CSSF’s inspections., with a description of the main actions, and the deadline for their implementation, under article 7(2) of the Grand-Ducal Regulation of February 1, 2010 and article 42(5) of CSSF regulation 12-02. If the number is zero, this must be clearly stated.

The report must be accompanied by documentation on the identification, assessment and mitigation of money laundering and financing of terrorism risks.

For entities not subject to CSSF Circular 18/698, the AML/CFT RC report should cover at least cover the following:

  • Overall residual money laundering and financing of terrorism risk assessment, including risk appetite, identified risks and mitigation measures put in place, emerging risks and their severity in terms of impact.
  • Results of AML/CFT due diligence on investors.
  • Results of AML/CFT due diligence on high-risk clients such as politically exposed persons, if any.
  • Results of AML/CFT due diligence on fund initiators, including group initiators.
  • Results of AML/CFT due diligence on investment advisors, if any.
  • Results of AML/CFT due diligence on distributors, if any.
  • Results of AML/CFT due diligence on delegates and service providers such as registrars and transfer agents or external portfolio managers, if any.
  • Results of AML/CFT due diligence on cross-border intermediaries, if any.
  • Results of AML/CFT due diligence on assets.
  • Results of AML/CFT due diligence on blocked accounts, if any.
  • Results of targeted financial sanctions screening.
  • Outcome of verification by the RC that all appropriate staff have been trained on AML/CFT issues.
  • List of co-operation with Luxembourg authorities on AML/CFT issues.
  • Dedicated money laundering and financing of terrorism shortcomings section, including remediation plan, if any.

What is the RC’s liability in the event of failure to submit the report?

A professional who fails to provide the AML/CFT report may be subject to sanctions as detailed in article 8-4 of the amended AML law of November 12, 2004.

If a recently appointed RC identifies that the outgoing RC failed to file the annual AML/CFT report, the CSSF expects the incoming RC to ensure that the report is submitted. Additionally, if the new RC finds that the exiting RC has performed no AML/CFT due diligence, the CSSF expects the entity’s board to submit a letter to explain the situation and the oversight performed by the board or compliance manager (RR) on the work of the outgoing RC.

What about entities being dissolved and placed in non-judicial liquidation?

Entities being dissolved and placed in non-judicial liquidation must submit the AML/CFT report to the CSSF until the effective start date of liquidation. AML/CFT reports are no longer required after the start of liquidation. However, since money laundering and financing of terrorism risks remain present during the liquidation, the liquidator is responsible for the entity’s AML/CFT controls, notably regarding co-operation with the authorities.

The CSSF’s FAQ can be found at:


CSSF issues circular 21/788 on AML/CFT external reporting

On December 22, 2021, the CSSF issued guidelines for the fund industry regarding the new external report on anti-money laundering and financing of terrorism measures that must be drawn up by an external expert.

To whom does the circular apply, and who is exempt?

According to the circular, all Luxembourg investment fund managers, including registered alternative fund managers and Luxembourg funds supervised by the CSSF for AML/CFT purposes, must provide the external report. It is not required from Luxembourg funds that have appointed a fund manager, whether established in Luxembourg or abroad. In these cases, the external auditor of the funds must nevertheless perform an AML assessment as prescribed by Article 49 (1) of CSSF Regulation No 12-02 of December 12, 2012 on combating money laundering and the financing of terrorist financing.

Who should draft the report?

All investment fund managers required to appoint an approved statutory auditor (réviseur d’entreprises agrée / REA) to audit their annual accounts shall designate the same REA to prepare the external report.

The registered AIFMs, which do not have the legal requirement to appoint a REA for the audit of their annual accounts, must appoint an REA for the specific purpose of preparing the AML/CFT external report.

What should the report contain?

The report is divided into two sections. The first concern the corroboration of answers given by the AIFMs as part of the CSSF annual AML/CFT online survey. The second deals with sample testing or specific work to be performed by the external expert.

Who should submit the report to the CSSF, when and how?

The report must be submitted to the CSSF via the eDesk platform within six months of the closing of the annual accounts. This should be carried out by the Responsable du Contrôle du respect des obligations professionnelles en matière de lutte contre le blanchiment et contre le financement du terrorisme (compliance officer, or RC); the Responsable du Respect des obligations professionnelles en matière de lutte contre le blanchiment d’argent et contre le financement du terrorisme (RR); or a member of the board of directors, or equivalent.

When does the circular come into force?

Luxembourg funds and managers must comply with the provisions of the circular for the financial years ending on or after December 31, 2021. For the financial year ending on December 31, 2021, an extension of three extra months is granted for the submission, up to the end of September 2022.

CSSF circular 21/788 is available here.

For more information, please get in touch with our investment management team.

CSSF details areas for improvement in AML/CFT controls in Luxembourg

At a conference on December 3, 2019, Luxembourg’s Financial Sector Supervisory Authority (CSSF) has underlined to members of the country’s investment fund industry the need for improvement in aspects of controls designed to curb money laundering and the financing of terrorism.

Noting that Luxembourg is Europe’s largest fund centre in terms of assets under management, the CSSF notes that the country’s National Risk Assessment on Money Laundering and Terrorist Financing risks in December 2018 indicated that the investment fund sector carried a high risk because of the variety of entities involved, the high volume of retail and institutional investors and of the international scope of its business.

As the responsible authority designated by Luxembourg’s Anti-Money Laundering legislation of 12 November 2004 (the “AML Law”) for the oversight of money laundering and financing of terrorism controls on the part of registered alternative investment fund managers and self-managed non-alternative investment funds, the CSSF conducted in 2019 a survey designed to collect Anti-Money Laundering / Counter Financing Terrorism (AML/CFT) relevant data, and perform AML/CFT scoring of supervised entities

It concluded from the results that while most of the managers and funds surveyed possessed a sound framework for AML/CFT controls, there were some outliers, and discussions with industry members had identified areas for improvement or where further guidance was required.

Beneficial owner

The CSSF emphasises that there is always at least one beneficial owner and it is always an individual. In the case of corporate entities, senior executives should be treated as the beneficial owners if no other individuals meet the description or if there is any doubt regarding the identified persons as to the accuracy of their identification (see Article 1(7) of the AML Law).


The regulator says procedures are the crucial building blocks of an efficient AML/CFT control framework, to ensure coherent and homogeneous controls commensurate with the entity’s risks. Therefore, there is no one-size-fits-all procedure; they should be customised and continuously updated in the light of changes to the regulatory framework and to the circumstances of entities themselves (see Article 4(1) of the AML Law).

Risk-based approach

A risk-based approach should be employed to optimise the use of resources and ensure that controls are commensurate with the inherent risks faced by the entity – the higher the risk, the more stringent the controls required. The CSSF notes that at the end of 2018 some registered AIFMs and self-managed non-AIFs did not have a risk-based approach in place, although it is mandatory, not optional (see Article 2-2 of the AML Law).

AML/CFT training

On its own, the mere implementation of AML/CFT training is not sufficient – it must be tailored to the services offered by the entities and adapted to the characteristics and requirements of the fund industry. Given the sector’s inherent high risk, the CSSF regards annual training as mandatory, and says it expects to see a significant improvement in terms of training curriculums over the coming year (see Article 4 of the AML Law).

Name screening on targeted financial sanctions

The CSSF says analysis of the questionnaire results revealed that the frequency of screening of names in connection with the targeted financial sanctions list, including for example those of the European Union and United Nations, needs to be improved to ensure that confirmed matches are notified by the professionals immediately to the competent authorities.


Transaction monitoring

The regulator underlines that transaction monitoring is vital to identify unusual transactions raising potential suspicion of money laundering or financing of terrorism that require investigation, and must be performed on all investors, not just those considered at highest risk. If monitoring is delegated to a third party, usually the Registrar Transfer Agent, the professional retains legal responsibility and must conduct oversight of the delegated provider.

Cooperation with the Financial Intelligence Unit

Under Article 5 of the AML Law, professionals must communicate any suspicion of money laundering or financing of terrorism to Luxembourg’s Financial Intelligence Unit without delay. To do so, they must be registered on the GoAML platform, which requires a LuxTrust token.

(See the Financial Intelligence Unit’s website,

The CSSF launched a fresh online survey collecting standardised key information concerning ML/TF risks to which the professionals under supervision are exposed and the implementation of related risk mitigation and targeted financial sanctions measures, on February 3, 2020. Responses for fund sector entities must be submitted through the CSSF eDesk portal, by 15 March 2020, by a member of the management body of the entity, preferably the AML/CFT Compliance Officer who is responsible for AML/CFT compliance.


CSSF clarifies in AML/CFT FAQ the responsible persons for a Luxembourg investment fund or manager

In a frequently-asked questions document issued on November 25, 2019, Luxembourg’s Financial Sector Supervisory Authority (CSSF) has clarified the roles and responsibilities of the two individuals in charge of compliance with Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) controls for Luxembourg investment funds and managers according to the requirements of Article 4(1) of the law of November 12, 2004.

The legislation requires funds and management entities to appoint a member of their management body responsible for compliance with measures to curb money laundering and financing of terrorism, known as the responsible for compliance (responsable du respect des obligations in the French text of the law or RR for short). Depending on the size and activity of the business, the legislation also requires appointment of a AML/CFT compliance officer, described as a responsable du contrôle du respect des obligations (RC).

Given the high level of risk of money laundering and financing of terrorism in the investment fund sector identified by Luxembourg’s National Risk Assessment, the CSSF underlines that in practice this means all Luxembourg funds and managers subject to AML/CFT supervision are legally required to appoint both a RR and a RC.

Who can be the RR and RC?

For investment funds supervised by the CSSF, the RR can be the board of directors or other governing body acting as a collegial body, or the board of directors may nominate one of its members, as long as the RR has sufficient AML/CFT knowledge with regard to the applicable Luxembourg legislation and regulation as well as with regard to the investments and distribution strategies of the fund. The RR shall be able to demonstrate this knowledge upon request of the CSSF and shall be reachable without delay upon contact by the Luxembourg AML/CFT competent authorities. The RC, who must be mandated personally by the board or other governing body of the fund, may be a member of the board with demonstrable appropriate expertise and experience of money laundering and financing of terrorism controls under Luxembourg’s legislation and regulations as well as being knowledgeable about the fund’s investment and distribution strategies.

For investment fund managers supervised by the CSSF, the RR can be the board of directors or other governing body, or one of its members, and their AML/CFT knowledge with regard to the applicable Luxembourg legislation and regulation should cover the services provided by the investment fund manager. The RC shall be the compliance officer at appropriate hierarchical level in charge of AML/CFT aspects for the investment fund manager and shall have AML/CFT knowledge and expertise related to the applicable Luxembourg legislation and to the investment fund managers’ services.

Can the RC be a third-party employee?

If the RC is a third party, the fund must conclude a contractual relationship with the RC personally or, where the contract is with the RC’s employer, it must name the individual, whose replacement must be subject to the fund’s approval, and the individual designated as the RC must acknowledge its appointment in writing. If the fund has designated an investment fund manager, the RC may be a member of the staff of such investment fund manager.

In principle the RC must be based in Luxembourg to carry out their duties, but the CSSF may exceptionally permit it to be located abroad if the fund manager and the employee designated as RC are not domiciled in Luxembourg, provided it fulfils the expertise and knowledge criteria.

Conditions applicable to RC

The RC of a fund manager should be the compliance officer in charge of AML/CFT controls. The CSSF stipulates that the RC, whether of a fund or manager, must be available to the regulator on request without delay, and that they must have access to all internal documents and systems required to perform their duties, especially if they are not based in Luxembourg.

For further details of requirements regarding the skills and duties of AML/CFT compliance officers, please refer to articles 40(3) to 43 of CSSF Regulation n°12-02 of December 14, 2012. This CSSF regulation is available here.