Financial Crime World

Here is the article in markdown format with proper headings, subheadings, and bullet points:

Beneficial Owner Definitions under Luxembourg Law

=============================================

Introduction

This article provides an overview of the beneficial owner definitions under Luxembourg law. It summarizes the key points for understanding who constitutes a beneficial owner in various contexts.

Definitions

Member State and Third Country

A Member State refers to a state that is a member of the European Union, including states that are contracting parties to the European Economic Area Agreement. A third country is any state other than a Member State.

Property

Assets of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, and legal documents or instruments in any form, including electronic or digital, evidencing title to or an interest in such assets.

Beneficial Owner

A natural person(s) who ultimately owns or controls the customer or a transaction or activity is being conducted.

Beneficial Owner Definition (Corporate Entities)

For corporate entities, the beneficial owner includes:

  • Direct Ownership: Any natural person who ultimately owns or controls a legal entity through direct ownership of a sufficient percentage of shares or voting rights.
    • A shareholding of 25% plus one share or an ownership interest of more than 25% in the customer held by a natural person shall be an indication of direct ownership.
  • Indirect Ownership: Any natural person who holds the position of senior managing official if no person under point (i) is identified, or if there is any doubt that the person(s) identified are the beneficial owner(s).
  • A shareholding of 25% plus one share or an ownership interest of more than 25% in the customer held by a corporate entity, which is under the control of a natural person(s), or by multiple corporate entities, which are under the control of the same natural person(s), shall be an indication of indirect ownership.

Control through Other Means

Control through other means may be determined in accordance with Articles 1711-1 to 1711-3 of the Law of 10 August 1915 on commercial companies, as amended, and by considering the following criteria:

  • Direct or Indirect Right: The direct or indirect right to exercise a dominant influence over a customer.
  • Appointment of Members: A majority of the members of the administrative, management, or supervisory bodies of the customer were appointed through direct or indirect exercise of the voting rights of one natural person.
  • Dominant Influence: The direct or indirect power to exercise or the actual direct or indirect exercise of a dominant influence or control over the customer.

Beneficial Owner Definition (Fiducies and Trusts)

For fiducies and trusts, the beneficial owner includes:

  • Settlor(s): The person(s) who establishes the trust.
  • Fiduciary(s) or Trustee(s): The person(s) responsible for managing the trust assets.

This article provides an overview of the beneficial owner definitions under Luxembourg law. If you have any specific questions or need further clarification on these points, please let me know!