The Luxembourg and Diekirch Public Prosecutors’ Offices have announced that the Grand Ducal Police will carry out systematic, territory-wide checks in the coming weeks to verify compliance with the Register of Beneficial Owners (RBE) rules.

At a glance

• The Grand Ducal Police, coordinating with the Luxembourg and Diekirch Public Prosecutors’ Offices, will conduct systematic checks across Luxembourg to verify compliance with the RBE Law of 13 January 2019, as amended.
• In-scope entities must ensure their beneficial ownership information is accurate, up to date, filed with the RBE, and also held at their registered office with supporting documentation.
• Non-compliance can expose both the entity and its managers to sanctions, with fines ranging from EUR 1,250 to EUR 1,250,000.

Background

The RBE Law of 13 January 2019 established Luxembourg’s Register of Beneficial Owners (Registre des bénéficiaires effectifs).

In a recent communication, the Public Prosecutors’ Offices of Luxembourg and Diekirch announced that the Grand Ducal Police, in close coordination with their offices, will carry out systematic checks across Luxembourg’s territory in the coming weeks to verify compliance with this law.

Key Obligations under the RBE Law

• Identify beneficial owners – Entities must identify the natural persons who ultimately own or control the entity, directly or indirectly, or on whose behalf a transaction or activity is carried out.
• File with the RBE – Relevant information must be filed and registered with the RBE within one month after the entity becomes aware of it, whether on initial registration or following a change.
• Retain documentation at the registered office – Entities must obtain and keep up-to-date beneficial ownership information, together with supporting documents, at their registered office, reflecting any changes without delay.
• What the checks will focus on – Verification will confirm that the information recorded in the RBE matches the entity’s actual ownership and control structure, and that a complete, current beneficial ownership file is kept at the registered office.

Consequences of Non-Compliance

Non-compliance may expose both the entity and its managers to administrative and/or criminal sanctions. Failure to comply with the RBE Law may lead to fines ranging from EUR 1,250 to EUR 1,250,000. Given the imminent, territory-wide nature of the announced checks, in-scope entities face near-term exposure if their records are incomplete or inconsistent with their actual ownership structure.

Timeline

The checks are expected to take place across Luxembourg’s territory in the coming weeks in-scope entities should confirm their compliance now.