Luxembourg: Compliance

The Anti-Money Laundering Authority has finalized three sets of Regulatory Technical Standards that will establish a unified framework for obliged entities across the European Union to combat money laundering and terrorist financing. These standards address customer due diligence requirements, transaction identification criteria, and group-wide compliance measures, marking a significant step toward harmonized AML/CFT enforcement throughout the EU.

Luxembourg's Business Register has clarified how beneficial ownership rules apply when companies are held through trusts or foundations, requiring entities to register the underlying trust or foundation's beneficial owners rather than applying the standard corporate ownership test. This interpretation, issued without a transitional period, means affected entities must immediately review their beneficial ownership filings to ensure compliance with the Register's position.

The European Patent Office's Enlarged Board of Appeal has issued a landmark decision in G 1/25 "Hydroponics," addressing a fundamental question that has divided practitioners for years: when patent claims are amended during examination, must the description be adapted to match? The ruling establishes that inconsistencies between claims and descriptions only require correction when they result in non-compliance with the European Patent Convention, not merely for achieving formal consistency.

The European Commission has launched a public consultation on draft guidelines for classifying high-risk AI systems under the EU AI Act, with stakeholders having until June 2026 to provide feedback. These guidelines aim to help providers and deployers determine whether their AI systems fall into high-risk categories that significantly affect health, safety, or fundamental rights.

The European Union's newly adopted anti-money laundering and counter-terrorist financing package represents a significant evolution in financial crime prevention, introducing a harmonised rulebook that expands the range of entities required to comply with AML/CTF obligations. This comprehensive analysis examines how the Package transforms the regulatory landscape for obliged entities across EU member states, comparing the new requirements against both the previous EU directive framework and existing domesti

The European Securities and Markets Authority has issued new supervisory guidance on triangular passporting under MiFID II, addressing how authorized entities can use branches or tied agents in one host Member State to provide investment services in another. This briefing establishes principles to prevent regulatory arbitrage while clarifying supervisory responsibilities among national competent authorities across multiple jurisdictions.

Luxembourg's tax authority has issued critical guidance on Pillar Two registration requirements, clarifying that all in-scope entities must register regardless of filing obligations or safe harbour applicability.

Luxembourg's Labour Code mandates that companies establish schemes ensuring employees can disconnect from digital devices outside working hours. With administrative fines of up to EUR 25,000 looming after the June 2026 deadline, employers must implement practical arrangements, awareness campaigns, and compensation measures for exceptional derogations.

Private credit funds are nowadays key providers of credit to businesses and have taken over the role of traditional banks.