Beneficial Ownership Definitions in the Grand Duchy of Luxembourg

The Grand Duchy of Luxembourg has established a set of definitions related to financial undertakings and beneficial ownership. Understanding these definitions is crucial for navigating the complexities of financial regulations.

Key Definitions

Member State and Third Country

• A Member State refers to a member state of the European Union or equivalent states within the European Economic Area Agreement.
• A Third country refers to any state that is not a Member State.

Property

• Property encompasses all assets, whether tangible or intangible, and includes legal documents or instruments evidencing title to or an interest in such assets.

Beneficial Ownership

A beneficial owner is defined as:

• Any natural person who ultimately owns or controls the customer (e.g., a company) or conducts transactions on behalf of another person.
• In the case of corporate entities, this includes:
  • Natural persons with direct or indirect ownership of 25% plus one share or an ownership interest of more than 25%.
  • Senior managing officials if no other beneficial owner is identified.

Control through Other Means

Control can be determined by various criteria, including:

• Dominant influence over a customer through contracts or articles of association.
• Appointments to administrative, management, or supervisory bodies through direct or indirect exercise of voting rights.
• Single management with another undertaking.
• Obligations under national law to prepare consolidated financial statements.

These definitions are essential for understanding the concept of beneficial ownership and its application in financial undertakings within the Grand Duchy of Luxembourg.