On 29 February 2024, the CSSF published a new Circular 24/854 setting out guidelines for the submission of the SRRC (as defined below) by investment fund managers and investment funds supervised by the CSSF (the “Circular”). The Circular is supported with a FAQ (list of questions and answers) on the SRRC for compliance with AML/CFT obligations (the “FAQ”) and a practical and technical guide about the SRRC (the “SRRC Guide”).
In accordance with Article 42 (7) of CSSF Regulation No. 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing, as amended, the compliance officer (responsable du controle du respect des obligations professionnelles (the RC”)) of supervised entities, including (i) Luxembourg investment fund managers (both authorised and registered alternative investment fund managers), (ii) Luxembourg branches of foreign investment fund managers; or (iii) Luxembourg investment funds supervised by the CSSF for AML/CFT purposes, has an obligation to prepare a summary report dedicated to AML/CFT (the “SRRC”). Such SRRC has to be submitted by the person responsible for compliance with the AML/CFT professional obligations at the level of the authorised management (responsable du respect du des obligations professionnelles (the “RR”)) to the Luxembourg regulator, the CSSF, within five months after the closing of the annual accounts of such entities.
Purpose of the Circular and clarifications of the FAQ/SRRC Guide
The Circular has the following two main purposes:
- To introduce the new SRRC template to the collective investment sector; and
- To clarify the means of reporting to the CSSF.
The SRRC Guide explains the submission procedure with technical steps available for the new SRRC template.
The FAQ state that the SRRC must be exclusively submitted via the CSSF’s eDesk and is under the responsibility of the RR. The RR can delegate the technical submission of the SRRC to another person, however, the RR shall remain ultimately responsible for the submission. The Circular confirms that in the case of Luxembourg investment funds which have designated a Luxembourg management company in charge of submitting the SRRC, they do not have to submit such report and consequently are out of the scope of the Circular.
Conclusions
The Circular has to be complied with for the financial years ending on or after 31 December 2023 but for financial years ending on 31 December 2023, an extension of two extra months is granted for the submission i.e. up to the end of July 2024.
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