Your obligations and needs
The RR function
The RR is ultimately responsible for AML Compliance. The RR’s duties include:
- Authorising relationships that involve PEPs (beginning and continuous basis) or high-risk investors
- Ensuring a robust AML/CFT compliance framework exists and is assessed at least annually
- Staying abreast of all current and upstream AML CFT legislative requirements
- Ensuring the AML/CFT obligations of the IF are being addressed on an ongoing basis and sufficient reporting mechanisms are in place for the IF management body and the Luxembourg AML/CFT competent authorities
How can this role be fulfilled?
The RR function can be undertaken by one person among the members of its management body or the management body itself. The RR:
- Must have sufficient Luxembourg AML/CFT knowledge which they can demonstrate upon request
- Is knowledgeable about the IFs’ investments and distribution strategies
- Is readily accessible for contact by the Luxembourg competent authorities
The RC function
The RC is the day-to-day contact for escalation of AML/CFT related matters. The RC duties include:
- Preparation, maintenance and ownership of the AML/CFT compliance framework for the IF, including the IF- level AML risk assessment
- Point of escalation for:
- suspicious activity reports
- hits from ongoing screening of Share Registers and transaction activity against screening lists
- PEP hits
- enquiries received from the Luxembourg Competent Authorities
- Systematically involved in the approval process of clients/beneficial owners domiciled in high-risk countries
- Presenting quarterly and annual RC/AML reports to the Investment Fund (IF) management body
- Conducting on-site inspection of the IFs Administrator
- Providing updates to the Investment Fund (IF) management body on upstream AML/CFT developments
- Maintaining the IFs PEP log and AML training log
How can this role be fulfilled?
The RC may either be a member of the management body with appropriate experience or can be outsourced to a suitably qualified third party delegate.
Similar to the RR, the RC must meet the prerequisite requirements while also having access to all internal documents and systems required necessary to perform their tasks. The RC will generally be beyond the time scope of most members of an IF management body, which is why they need to be able to place their full trust in a regulatory service provider to execute these functions effectively.
