On 21 February 2022, the Minister of Justice, Sam Tanson, presented the reform of the Luxembourg Business Registers (LBR)*.
This ambitious transformation from 2021 to 2023 includes, among other things, the introduction of administrative sanctions aimed at improving the quality, reliability and prompt updating of the information available in the RCS (Trade and Company Register) and RBE (Beneficial Owners Register), as well as the introduction of a more user-friendly website for the general public and IT services, facilitating access to information for professionals and administrations.
Following an in-depth review of the LBR strategy and an international benchmarking exercise in 2020, four major objectives have been identified:
- Provide accurate, complete, up-to-date and correct information
- Ensure optimal use of data and maximise the usefulness of the registers for the Luxembourg economy
- Ensure compliance with legal requirements in order to guarantee reliable data for professionals and administrations
- Support and guide users to provide a seamless user experience
Historically, commercial registers were intended to collect information and documents from registered entities, but market developments and international standards have given them a more proactive role in the business environment and risk mitigation. At the national level, this has led to a considerable increase in requests for access to data from national authorities.
As a result, the LBR must now adapt its tasks to the many national and even international requirements and strengthen its role as a competence centre.
The transformation of the LBR will be structured around three key initiatives and will be implemented by the end of 2023:
- Implement the necessary adaptations to the legal framework by introducing, among other things, sanctioning powers.
Currently, the administrator is not empowered to enforce the legal obligations to file and update data. The government bill gives him sanctioning powers, but without making him a regulator. The primary objective is to optimise its role as a centralising authority for essential information on entities registered in the Grand Duchy of Luxembourg.
The same applies to the management of the Beneficial Owners Register (RBE). As the latter represents a key tool in the fight against money laundering and terrorist financing, the aim is to facilitate access to it for national authorities (amended law of 13 January 2019), so that they can effectively use the available data.
- Establish the target operating model and define the required processes.
The LBR intends to deepen the support provided to registered entities in order to comply, in particular through individualised monitoring.
- Invest in technology (digitisation of forms, secure platform, etc.), increase capacity (doubling of staff from 2021 to 2023) and optimise know-how (quality of support) to achieve the LBR's new operational state.
The minister and the LBR director Yves Gonner also presented the new electronic platform. Alongside the website, this IT tool makes it possible to exchange information securely between the administrator and its users, with a view to accelerated, automated and continuous communication. The platform has a double advantage:
- Access a large volume of information automatically and quickly
- Digitalising the services offered in order to simplify administration and make them more user-friendly
Finally, this tool allows consultation of the RCS and the RBE, both for administrations and for the national and international professional public. Thus, during the year 2021, nearly 20 million documents were consulted and downloaded from the LBR website.
*The LBR, an economic interest grouping (EIG) under the aegis of the Ministry of Justice, is the manager of the Trade and Company Register (RCS), the Compendium of Companies and Associations (RESA), and the Beneficial Owners Register (RBE).
Press release by the Ministry of Justice