Agefi Luxembourg - juillet août 2024

AGEFI Luxembourg 8 Juillet / Août 2024 Economie / Banques By Daniel CAPOCCI (portrait), CEO and Nicoletta MORSUT, Conducting Officer, FARAD Investment Management T o set up a Luxembourg- based company, you need an address and, for operat- ing companies, an operational of- fice. In certain circumstances, a company may not be in- terested in establishing its own private prem- ises. Instead, it may choose to be domiciled at the premises of a third party, using these prem- ises as the company’s offi- cial domicile. This domicile can serve as the company’s head of- fice or as an ordinary branch of its business. Domi- ciliation is a suitable solution for companies that, due to the nature of their activities, do not require their own premises. However, domiciliation is not a validoption for commercial companies,whichare legally required to have physical premises in Lux- embourg. The domiciliation of companies is an ac- tivity regulated by the law of May 31, 1999. Domiciliation is a service offered by certain providers. Not everyone can domicile other com- panies within their premises. The law reserves the exercise of domiciliation to certain regulated professions, including (see the lawformore details): - Credit institutions - Other professionals in the financial and insurance sectors - Registered attorneys at law (avocats à la Cour) - RegisteredEuropean lawyers practicingby virtue of their original professional qual- ification - Company auditors - Approved statutory auditors - Chartered accountants All these professionals can be- come domiciliary agents. They are expected to operate professionally and in good faith. Specifically, pro- fessionals in the financial sector (PSF) re- quire prior authorization from the CSSF (Commissionde Surveillance duSecteur Financier) before starting domiciliation activities. The pilars of the domiciliation services The domiciliary agent and the domiciled company are required to sign a written domiciliation agree- ment. This agreement allows the company to estab- lish a head office at the domiciliary premises and conduct business from there. It also outlines the services that the domiciliary agent provides to the domiciled company. Domiciliation services primarily include: - Providing a registered domicile for the company at the registeredoffice of the service provider. - Storing all books, registers, contracts, correspon- dence, andother documents related to the company. - Providing any requested documents and informa- tion to supervisory, administrative, andfiscal bodies. - Additionally, the domiciliary agent can offer typi- callyoptionaladministrativeandcorporatesecretarial services, such as: Convening and holding the company’s board of di- rectorsmeetingsandannualgeneralmeetings,includ- ingthepreparationandsendingofconveningnotices, statements, reports, letters, proxies, and other related documentation. - Drafting anddistributingmeetingminutes. -Handlingdeposit formalitieswith theLuxembourg Register of Trade and Companies (RCS), including registering, lodging, and publishing all mandatory legal notices onbehalf of the company. - Providing accounting andpayment services. Professionals of the Financial Sector (PSF) are regu- lated entities overseen by the CSSF. A domiciliation agreement issued by a PSF is strictly regulated and must include a series of elements including (but not limited to) the details of the person in charge of the domiciliaryagent,thedetailsoftheservicesbeingpro- vided, particulars of the rights and responsibilities of thedomiciledcompany,andthemeansofcommuni- cation between the parties to the agreement. In addi- tion, Anti-Money Laundering (AML) obligations apply. By strictly regulating the domiciliation service offered by these entities, the regulator reinforces the reliability and integrity of this service. Domiciliation vs. renting or sub-renting It is probably worth emphasizing the difference be- tweendomiciliationandrentingorsub-rentingagree- ments.Thesehavealmostnothingincommonoutside of the fact that the contract provides anaddress to the tenantorlessee.Anyonecouldrentorsub-rentoffices, private individuals as well as companies (sub-rent shouldhowever be allowed in the rental agreement). Regardingdomiciliation,itisregulatedserviceoffered by certain entities only and within a framework de- fined by law. It is a service that is attractive formany companiesbecauseitreducesthefixedcostofrunning acompany.Ithas,however,tobeset-upbyrespecting the rules and laws. Conclusion Domiciliation has been established in Luxembourg fordecadesandhasbeenstrictlyregulatedsince1999. It is an effective way for smaller companies or com- panies that donot requireoperational offices for their employees (if theyhave any) to savemoney. FARAD I.M., as a Professional of the Financial Sector (PSF), has had CSSF authorization to provide domi- ciliation services since 2014, building a consolidated experienceover theyears. If youare looking formore informationon this topic or for a domiciliation agent, don’t hesitate to contact us. Domiciliation in Luxembourg – how does it work L ’Administration des contributions directes (ACD) et l’Adminis- tration de l’enregistrement, des domaines et de la TVA (AED) ont renforcé leur col- laboration le 24 juin 2024. «La coopération sans cesse plus étroite entre les deux administra- tions fiscales constitue une nou- velle étape importante dans notre lutte commune contre la fraude fiscale. Le respect des règles fis- calesseramieuxhonoré.Etnosad- ministrations deviendront encore plus performantes en conformité avec la protectiondes données», a déclaré le ministre des Finances, Gilles Roth. Une note de service portant ins- tructions relatives à l’exécution de la loi du 19 décembre 2008 ayant pour objet la coopération interadministrative et judiciaire ainsi que le renforcement des moyens des administrations fis- cales a été signée le 24 juin aumi- nistère des Finances par Chris- tian Buttel, directeur adjoint de l’AED, et par Jean-Paul Olinger, directeur de l’ACD, en présence duministre des Finances. «C’est une avancée très nette par rapport à notre cadre actuel de coopération», a soulignéRomain Heinen, directeur de l’AED. «Notre coopération est gagnant- gagnant pour nos deux adminis- trations», a complété Jean-Paul Olinger. Les points centraux de cette coopération plus étroite contre la fraude fiscale sont les suivants : 1. Amélioration des échanges entre bureaux d’imposition Les acteurs de l’échange au ni- veau des bureaux d’imposition ne sont plus exclusivement les préposés ou les receveurs, mais également leurs adjoints. 2. Échange spontané obligatoire au-delà de certains seuils L’échange spontané se fait obli- gatoirement au-delà de certains seuils de redressement (chiffre d’affaires et frais déductibles). Les seuils évolueront, si néces- saire, en fonction de la pratique. 3. Échange spontané des infor- mations relatives aux rembour- sements Les informations relatives aux remboursements figurent désor- mais dans l’échange spontané par voie informatique afin de permettre à l’autre administra- tion d’opérer une sommation à tiers détenteur (STD). 4. Contrôles simultanés en coo- pération avec les bureaux d’imposition Les contrôles simultanés conti- nuent d’être coordonnés de ma- nière centralisée. Toutefois, les bureaux d’imposition pourront participer désormais aux contrôles simultanés, au-delà du Service des révisions (ACD) et du Service antifraude (AED) comme actuellement. 5. Évaluation régulière de la coopération Les deux directions évaluent ré- gulièrement les résultats de la coopération. Ce «feedback» per- met d’améliorer la coopération de manière graduelle. Source :ministèredesFinances «Une nouvelle étape importante contre la fraude fiscale» (de g. à dr.) Christian B UTTEL , directeur adjoint de l’AED ; Gilles R OTH , ministre des Finances ; Jean-Paul O LINGER , directeur de l’ACD ©MFIN By Nessym Jules TIR, Avocat/Partner, Global Compliance & Investigations, Wolff & Partners SCS, Attorneys at law A s part of the introduction of the EUAML Package, we previously examined the fu- ture powers of theAnti-Money Laun- deringAuthority (“AMLA”) and its impacts. (1) In themeantime, on 30May 2024, the EuropeanCouncil has adopted newanti-money laundering and counte- ring the financing of terrorism rules. In this issue, we believe it is impor- tant to highlight some regula- tory points relating to the EU SingleRulebookRegulation (AMLR) and the 6thDirective (AMLD6) which alsomake up this newAMLPackage. The new, stricter rules will strengthen the European AML framework to address the loopholes observed withintheEUintermsofmoneylaundering.TheEu- ropeanCommissionthenstudiedmorerobustcondi- tions for harmonising the rules for better supervision at the level of the EuropeanUnion. The 6thDirective : clarifications on institutional rules Since the introductionofDirective 91/308/EECof 10 June 1991 on prevention of the use of the financial systemfor the purpose ofmoney launder- ing, the European Union has built its anti-money laundering legislative arse- nal through the succession of several European directives. The latest direc- tive, known as the 6 th Directive, com- pletes the AML Package and aims to improve the organisation of national anti-money laundering systems by clarifying the modalities of cooperation between financial intelligence units and supervisors. The 6 th Directive will establish provi- sionsrelatingtosupranationaland national risk assessments and beneficialownershipregisters. Indeed,aframeworkbecomes necessary following the deci- sion of the Court of Justice of the EuropeanUnion. (2) Article24spec- ifiesthatFinancialIntelligenceUnits (“ FIUs ”) are empowered to act without delay,directlyorindirectly,whenatransactionissus- pectedofbeinglinkedtomoneylaunderingorterror- ist financing, in order to suspend or refuse the executionof that transaction. (3) In addition, FIUswill be able to report to obliged en- tities with information relevant to the execution of customer due diligence measures. This information will include the typesof transactionsor activities that pose a significant risk, the specific individuals who posea significant riskofmoney laundering, itspred- icate offenses or terrorist financing, and specific geo- graphicareasthatposeasignificantrisk.Finally,FIUs willprovidefeedbacktoobligedentitiesonsuspicion reporting, which will focus on the quality of the in- formation provided, the timeliness of the reporting, the description of the suspicion and the documenta- tion provided at the submission stage. The FIU provides this feedback at least once a year andsupervisorswillalsohaveaccesstothisfeedback. In addition, FIUs will share information with each other and with competent authorities as well as co- operate with theAMLA, Europol, Eurojust, and the European Public Prosecutor’s office. (4) Diligencewithregardtohigh-riskthirdcountrieswill bestrengthenedaswellasastateddesiretostrengthen cooperationagreementsbetweentheEuropeanUnion and the authorities of third-party countries. (5) ASingleRulebookRegulation as a European regulatory compliance base Chiefly, the single regulation onAML/CFT is neces- sary in order to build a harmonized European Legal Framework.Indoingso,itwillcontaindirectlyappli- cableruleswithanexpandedscopeofapplication,no- tably the introduction of high value traders (yachts, luxurycars)aswellasprofessionalfootballagentsand professional football clubs for the following transac- tions: transactionswithan investor; transactionswith a sponsor, transactions with football agents or other intermediaries, and transactions for the purpose of transferring a footballer, with exemptions for certain football clubs. Theregulationalsospecifiesastrengtheningintheim- plementationofinternalpolicies,controls,andproce- dures of obliged entities. Good repute requirements for compliance personnelwill also be a prerequisite. Additionally, Directive (EU) 2019/1937 of the Euro- pean Parliament and of the Council (41) applies to the reporting of violations of the regulation, i.e. obligedentities establishing internal reportingchan- nels that meet the requirements set out by the dedi- catedDirective. With respect to customers who are subject to United Nations financial sanctions or who are controlled by natural or legal persons or entities subject to United Nations financial sanctions, or in which natural or legalpersonsorentitiesthataresubjecttoUNfinancial sanctionsholdmorethan50%oftheownershiprights or amajority interest, whether individually or collec- tively, the obliged entities will be required to keep a recordofthefundsorotherassetstheymanageforthe customer as well as the customer’s transaction at- temptsandtransactionscompletedforthecustomer. (6) The latest press release specifies that this is the final stage of the adoption procedure, and the texts will be published in the Official Journal of the EU and enter into force. Indeed, the regulation relating to the fight against moneylaunderingwillapplythreeyearsafteritsentry intoforceand,withregardtothe6thDirective,Mem- ber States will have two years to transpose certain partsofthedirectiveonthefightagainstmoneylaun- dering, and three years for the others. 1)N.TIR,AMLA:anewEuropeanweapontofightagainst moneylaundering,AGEFILuxembourg,01/2024 2 ) 3 ) 4 ) 5 ) 6 ) EU AML Package & Compliance EU Single Rulebook Regulation and the 6th EU Directive