News: Luxembourg Trusts Required to Disclose Beneficiaries

Back in 2018, the European Union established stringent requirements for the activities of trusts in the territory of the economic bloc. This was done in connection with the counteraction to illicit cash circulation and the financing of terrorism. Luxembourg has become another state that has adapted its trust system to EU requirements. The country launched a register of beneficiaries for trust owners.

Registration agents will now be required to enter all information about the ultimate beneficiaries of the trusts. Also, there will be information about the trustee and the founders of organizations in the registry. If a trust does not provide information, it will be fined € 1,250,000.

There is an important difference between the registries of the ultimate beneficiaries of trusts and companies. Information on beneficiaries of trust funds will not be public.

Luxembourg is late in introducing the necessary measures. The state was supposed to launch a register of beneficiaries on March 10, 2020, but the development was too long. Nevertheless, not only Luxembourg has such problems, a number of state.