|
By Frank van Kuijk, Guillaume Benoit and Megane Lindecker, Loyens Loeff
When US fund sponsors aim for an EU capital raise, European investors typically request a Luxembourg special limited partnership (SCSp) to commit to. EU anti-money laundering (AML) and counter terrorist financing (CTF) rules apply for onboarding investors. These rules are more intrusive than the non-EU AML/CFT requirements US sponsors are used to when onboarding investors to an US or offshore fund vehicle.
In practice this disconnect often causes frustration between the EU AML/CTF service provider and the US sponsor. It may also cause frustration between the US sponsor and prospective investors, especially when these investors are not EU based. Like US sponsors, non...
|