In comparison to the 2022 version, the AED has introduced additional points in the AML/CFT Questionnaire, particularly in relation to higher-risk countries, jurisdictions, and industries. Furthermore, the questionnaire now includes an inquiry about the internal risk assessment regarding terrorist financing, specifically if this assessment is separate from the assessment for money laundering. If not, an explanation is requested.

The deadline for submitting both the RC Report and the AML/CFT Questionnaire to the AED is 31 May 2024, at the latest. While the first one must be submitted by the RC, the second one should be submitted by the responsable du respect des obligations (“RR”), unless delegated by the RR to the RC.

Regarding the RC report, the AED’s website provides a list of the information to be covered by the said report. It’s important to note that the AED requests the signed report in PDF format excluding any other transmission format (e.g. a scan of the printed report).

On the other hand, regarding the AML/CFT Questionnaire, the AED has published an updated excel file to be filed with the information covering the financial year ended in 2023 and a practical guide[2] providing useful general information such as definitions, summary of professional obligations and practical examples.

The AML/CFT Questionnaire, in the form of an excel file, is divided into 3 sections as follows:

• Section 1 – Identification: related to general information on the governing body, the RC, the RR and the UBO(s) of the RAIF;
• Section 2 – MLTF risks: related to information on thirds such as services providers, distributors or on the predominant investment strategy;
• Section 3 – Mitigation: related to the internal procedures of the RAIF such as the training of the staff members, the declaration of a risk based approach for AML/CFT purposes or the due diligence on the investments, if any.

Prior the completion of the AML/CFT Questionnaire, we recommend to consult the dedicated “Definitions” worksheet in the excel file together with the guide.

The filing details and requirements are summarized in the following table:

 

In accordance with the AML/CFT Law, sanctions may be imposed for failure to comply with AML/CFT obligations. As a reminder, for RAIFs failing to comply with the AML/CFT obligations, the AED has the power to impose administrative sanctions under its scope from a warning, a reprimand or a public statement to administrative fines of up to EUR 1,000,000 at the most.

The present newsletter is not intended to be exhaustive but rather aims solely to provide a general overview of the notification requirements to the AED by RAIFs.

KLEYR GRASSO remains at your disposal for any assistance in relation to the AML/CFT Questionnaire and the RC Report.

 

 

[1]   Law of 12 November 2004 on the fight against money laundering and terrorist financing (the AML/CFT) 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, as amended.

[2]  Guide to the RAIF AML/CFT Questionnaire published by the AED.