Clifford Chance

Luxembourg law dated 28 July 2014 on mandatory deposit and immobilisation of bearer shares and units

16 January 2015

The Luxembourg law dated 28 July 2014 on the mandatory deposit and immobilisation of bearer shares and units (Law) entered into force on 18 August 2014.

The objective of the Law is to bring Luxembourg law in line with the requirements of the Financial Action Task Force (FATF) and the Global Forum on Transparency and Exchange of Information for Tax Purposes regarding the identification of holders of bearer shares/units. The Law therefore introduces a new mandatory procedure requiring that bearer shares/units issued by commercial companies and certain regulated investment vehicles are deposited with a depositary established in Luxembourg and who is subject to general obligations under the legislation on the combat against money laundering and terrorism financing (AML/CTF).

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