Luxembourg IFMs and Funds: Update on reporting

As you may already be aware of, actions are required from i) Luxembourg investment fund managers – sub-threshold or authorized AIFM, UCITS manco (IFM), ii) undertakings for collective investment supervised by the CSSF for AML/CFT purposes – UCITS, SIF, SICAR, UCI Part II (Funds) and iii) their auditors pursuant to: 

i. CSSF Circular 21/788 introducing the obligation for IFMs and Funds (which should mandate their approved statutory auditors (REA) to that effect) to prepare an AML/CFT External Report in relation to the AML framework and compliance of IFMs and Funds; and

ii. CSSF Circular 21/789 (applicable to IFMs – excluding sub-threshold IFMs) and CSSF Circular  21/790 (applicable to Funds) introducing the obligation for IFMs/Funds to complete a self-assessment questionnaire (SAQ) to be reviewed and commented on by their REA in a separate external report (the REA Report).

What actions are required?

- AML/CFT External Report pursuant to CSSF Circular 21/788 is divided into two sections covering key AML/CFT controls, being (i) a section concerning the corroboration of answers given by the entities in scope in the context of the CSSF annual AML/CFT survey (which will start on 15 February 2023 covering 2022 and to be completed by 31 March 2023 at the latest: please note that the CSSF just issued a Circular letter dated 7 February 2023 on the subject) and (ii) a section dedicated to sample testing. This AML/CFT External Report also allows both the REA and the entity in scope to comment on the results of the work performed.

The submission of this report via eDesk is to be made under the responsibility of the management body of the entity in scope, exclusively by either (i) the RR, (ii) the RC or a member of the management body of such entity within six months of the end of the financial year.

- SAQ pursuant to CSSF Circular 21/789 and 21/790 is a broad questionnaire covering many topics, such as organization, investment compliance, valuation, etc. and thus requires to collect numerous data. In that respect, the management body of the entity in scope is required to ensure that adequate organizational processes are in place to allow the retrieval of such data from service providers needed to provide answers to the questions contained in the SAQ. The management body is also responsible for the content of the SAQ, which it needs to review and validate before submission. 

The submission of the SAQ must be made via eDesk by the management body of the entity in scope within (i) three (3) months for UCITS and (ii) four (4) months for SIF, SICAR, UCI Part II and IFMs, at the end of the financial year of the entity in scope. 

- REA Report on the SAQ pursuant to CSSF Circular 21/789 and 21/790 being a separate report whose aim is to ensure that the answers provided by the entity in scope in its SAQ are reliable, and contains key questions extracted from the SAQ to be addressed by the REA. 

The submission of the REA report must be made via eDesk by the management body of the entity in scope within (i) five months for UCITS, (ii) six months for SIF, SICAR, UCI Part II and (iii) seven months for IFMs, at the end of the financial year of the entity in scope. 

Contact us if you need our help in completing the self-assessment questionnaire for your IFM / Fund, reviewing your proposed answers to the questionnaire or addressing any questions. We ensure that the responses appropriately address the relevant questions and are in line with legal and regulatory requirements and the CSSF expectations.